FCA Faces Probe Over LCF Collapse

Treasury orders investigation into City regulator's role in collapse of London Capital Finance, which left 11,000 investors £230 million out of pocket when it went under

James Gard 24 May, 2019 | 10:53AM

Cash

The Treasury has launched a review into the collapse of London Capital Finance (LCF) that will look at whether the Financial Conduct Authority failed in its statutory objective to protect consumers.

The FCA, more used to leading investigations of its own, will face scrutiny over the failure of LCF, which went into administration in January. The firm marketed and sold high-interest bonds that were not covered by the Financial Services Compensation Scheme (FSCS), which protects savers’ capital up to £85,000 per person. Some 11,000 investors lost £236 million when the company went under.

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James Gard  is content editor for Morningstar.co.uk

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