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

Background to the investigation

On 30 January 2019, LCF entered administration following regulatory action by the FCA in December 2018.

According to the March 2019 report issued by LCF’s administrators, as at December 2018, LCF had, however, already issued some 16,706 LCF mini-bond/ISA products, totalling £237,207,497, across 11,625 investors. On 22 May 2019, following a request from the FCA’s Board, the Economic Secretary to the Treasury directed the FCA to set up this independent investigation into the circumstances surrounding the collapse of LCF. At the same time, the Treasury announced its approval of the proposed appointment of Dame Elizabeth Gloster to lead the investigation.

The independent investigation will consider the FCA’s actions, policies and approach when regulating LCF. Please find more information about the remit of the investigation here

Bondholders and others affected by the role of the FCA and the collapse of LCF can submit information to the investigation here.

25th August 2020: Update on the investigation 

On 25 August 2020, Dame Elizabeth Gloster announced a second revision to the timeframe for the delivery of her report setting out the findings from the independent investigation into the Financial Conduct Authority’s (FCA) regulation of London Capital & Finance plc (LCF). Assuming there are no further significant developments, the revised date for completion of the report will be on or before Monday, 23 November 2020.

This follows an initial change to the delivery date in June from 10th July to 30th September, which was due to delays in receiving documents and information from the FCA, which, in turn, impacted the investigation team's timetable to interview FCA employees. These delays were further exacerbated by the COVID-19 pandemic.

The revised timeframe is as a result of the following reasons:

  • The FCA disclosed approximately 3,500 documents in mid-July which should have been provided previously and have required  members of the investigation team to set aside time from their ongoing work on the report to review and consider their import to the investigation.
  • Interviews with senior employees were only made possible from mid-June and took much longer than anticipated. These raised important new issues requiring substantial additional work as well as further interviews.

In the circumstances, to allow proper consideration of these issues, and assuming there are no other significant developments, Dame Elizabeth has notified the FCA of the revised timeline for delivering her report. The exchange of letters between Dame Elizabeth and the FCA can be seen here.

Dame Elizabeth Gloster said: “I am very conscious that many individuals who invested in LCF have been impacted both personally and financially by LCF’s insolvency and will understandably be disappointed by the further delay in the delivery of my report.  However, as I have said previously, I consider it vital for all concerned that my report is thorough and robust, and takes into account all the relevant issues. I have asked the FCA to take any necessary steps to ensure my investigation is completed as soon as possible so that I can share my report with them for submission to HM Treasury by the revised date.”