Financial watchdog failed to properly regulate collapsed mini-bond scheme
PA
17 December 2020, 3:48 pm
The Financial Conduct Authority (FCA) failed to properly regulate and supervise mini-bond operation London Capital & Finance (LCF) before it went into administration leaving 11,600 investors facing losses of £237 million.
The findings were made in an independent report for the Government of the financial regulator’s actions. It makes nine recommendations for the FCA and a further four for the Government.
Dame Elizabeth Gloster said in her delayed report, which had been due in November, that the FCA must focus on improving their internal authorisation and supervision processes.
Economic Secretary to the Treasury John Glen at the dispatch box
Two of the City watchdog s top executives are under pressure to repay tens of thousands of pounds in bonuses after being castigated for multiple failures during the collapse of a major minibond provider.
Sky News can reveal that senior parliamentarians want Megan Butler and Jonathan Davidson to repay £90,000 in bonuses awarded to them for the 2018-19 financial year after they were singled out for criticism in an inquiry into the scandal at London Capital & Finance (LCF).
On a day of shame for the Financial Conduct Authority (FCA), Dame Elizabeth Gloster, a former Court of Appeal judge, said the watchdog had been wholly deficient in discharging its responsibilities for the oversight of LCF.
Independent Investigation Into The UK Financial Conduct Authorityâs Regulation And Supervision Of London Capital & Finance Published Date
17/12/2020
The independent report into the Financial Conduct Authority’s (FCA) regulation and supervision of London Capital & Finance plc (LCF) has been published today.
The investigation, led by Dame Elizabeth Gloster, looked into the events relating to the FCA’s regulation and supervision of LCF, which entered administration in January 2019, impacting over 11,000 people who invested around £237 million.
The report concludes the FCA did not effectively supervise and regulate LCF during the relevant period, and makes nine recommendations for the FCA, focusing on how they should improve their internal authorisation and supervision processes.
Andrew Bailey apologises to LCF victims in wake of damning report
Government considering offering compensation to victims of failed minbond firm after independent review s highly critical report
17 December 2020 • 4:14pm
Former Financial Conduct Authority chief Andrew Bailey (right) meets with protesters outside the FCA offices in December 2019
Bank of England governor Andrew Bailey has apologised for his role in the demise of London Capital & Finance, the investment firm that collapsed owing customers almost £240m.
A damning report has been published criticising the actions of the City watchdog, the Financial Conduct Authority, which was led by Mr Bailey when the scandal erupted. The Government could now make one-off compensation payments to investors who lost their life savings.
Former Financial Conduct Authority boss Bailey apologises over handling of mini-bond scandal thetimes.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thetimes.co.uk Daily Mail and Mail on Sunday newspapers.