Treasury launches investigation into London Capital & Finance

Will also assess FCA's actions

Tom Ellis
clock • 2 min read

HM Treasury has revealed Dame Elizabeth Gloster will lead an independent investigation into the collapse of investment and mini-bond firm London Capital & Finance (LCF).

The former Court of Appeal judge will report her findings back to the Treasury, including an assessment on how the Financial Conduct Authority (FCA) exercised its powers. The Treasury will also begin a wider policy review, which will look at the regulatory regime for so-called mini-bonds and other non-transferable securities. In March, four individuals were arrested in the Kent and Sussex areas as part of a Serious Fraud Office investigation into LCF. The month before, the FCA had directed LCF immediately to withdraw its promotional material on the basis the way in which it was marketing...

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