FCA's supervision of London Capital & Finance to be investigated

'Broad and comprehensive remit'

The Financial Conduct Authority (FCA) has called for an independent investigation into the issues raised by the collapse of London Capital & Finance (LCF), including its own supervision of the firm.

Last month, Treasury select committee chair Nicky Morgan MP called on the FCA to look more closely into events at the collapsed mini-bond issuer. The MP's call came after four individuals were arrested in the Kent and Sussex areas in connection with the firm, which entered into administration in January. The regulator said the investigation should cover questions in two areas - whether the existing regulatory system adequately protects retail purchasers of mini-bonds from unacceptable levels of harm, and the FCA's own supervision of LCF. At a meeting last Thursday (28 March), the r...