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.

2nd June 2020: Update on the investigation 

On 2nd June 2020, Dame Elizabeth Gloster announced a revised timeframe for the delivery of her report. The revised target date for completion of the investigation is Wednesday 30 September 2020.

As indicated at the bondholder meeting in January 2020, there had been delays in receiving documents and information from the FCA, which, in turn, impacted the investigation team’s timetable to interview FCA employees. At the time of that meeting, the intention had been for the investigation to be completed within the original timeframe, reporting by 10 July 2020, subject to no further issues or delays going forward.  

The COVID-19 pandemic has posed significant challenges for the FCA as it transitioned to home working and developed and implemented urgent policy measures. In turn, these have further impacted on the timetable for interviews with FCA employees. In the circumstances, Dame Elizabeth has notified the FCA of her revised timeline for delivering her report. The exchange of letters between Dame Elizabeth and the FCA can be seen here.

Dame Elizabeth Gloster said: “The decision to extend the timeline for completion of my investigation has not been taken lightly. I appreciate that this may well cause anguish to some LCF investors, given the substantial personal and financial impact on many of them as a result of LCF’s collapse. However, I consider that it is critical for my team and me to develop as complete a picture as possible in relation to the key issues in order that my report, when finished, will be comprehensive and robust. Once completed, I will share my report with the FCA for submission to HM Treasury in accordance with the Protocol.”