Government response to LCF collapse

The Government have released their latest in the response to the collapse of the investment firm, London Capital & Finance (LCF). 

There have been several questions about the conduct of the firm, as well as its supervision by the Financial Conduct Authority and the regulatory framework within which the firm operated. The Treasury has laid before the House of Commons a direction to the Financial Conduct Authority to investigate the circumstances surrounding the firms collapse and the FCA’s supervision of it. 

The Financial Conduct Authority has appointed Dame Elizabeth Gloster to lead the investigation, who is an expert on commercial and regulatory law. She will look at the events and circumstances surrounding the failure of LCF and whether the FCA discharged its functions in a manner which enabled it to effectively fulfil its statutory objectives. 

The Financial Conduct Authority will report back to Treasury Ministers within a year once the investigation has concluded. The Treasury has also announced today that they will review the wider policy questions that have been raised by the collapse of LCF.