The investigation is complete and the report has been published here.

The investigation is tasked to consider issues connected with the regulation by the Financial Conduct Authority (FCA) of London Capital & Finance (LCF) in the period 1 April 2014 to 30 January 2019.

Specifically, the investigation will consider whether the FCA discharged its functions in respect of LCF in a manner which enabled it effectively to fulfil its statutory responsibilities. This means that the investigation will focus on:

  • Whether the FCA adequately supervised LCF’s compliance with its rules and policies

  • Whether the FCA had in place appropriate rules and policies relating to the communication of financial promotions by LCF

  • Whether the FCA had established appropriate policies for responding to information provided by third parties regarding the conduct of LCF

  • Whether those policies were properly applied

  • Whether the FCA received information of significance concerning the conduct of LCF during the relevant period

  • Whether the FCA responded appropriately to such information

  • Whether the permissions that LCF was granted were appropriate for the business activities which it carried on

Dame Elizabeth Gloster and her team are very conscious of the considerable financial and personal impact which the events concerning LCF have had on many of those who placed, and lost, investments with LCF.

However, as set out above, the remit of the investigation is to consider the conduct of the FCA over the period 1 April 2014 to 30 January 2019. That means that the investigation will not be in a position to determine:

  • Whether individual bondholders are entitled to compensation

  • The location or recoverability of any investments following the collapse of LCF

  • Whether any criminal or civil liability attaches to those involved in the events of LCF

For queries around compensation, and other issues outside the scope of the independent investigation, please find more information here

The investigation is independent of, and separate from, other inquiries being carried out by other organizations arising from the collapse of LCF.