Investigation into FCA’s regulation of London Capital & Finance to be delayed

The revised target date for completion of Dame Elizabeth Gloster’s investigation would be September 30, 2020.

The independent investigation into the Financial Conduct Authority’s regulation of London Capital & Finance is poised for a delay, according to correspondence between Dame Elizabeth Gloster and Charles Randell published today.

Dame Elizabeth Gloster has notified the FCA formally that it will not be possible to complete her investigation by July 10, 2020.

On the basis that the senior employee interviews (including, for the avoidance of doubt, Mr Andrew Bailey) take place during the first half of June 2020 and there are no significant issues arising from the data that has not yet been received, Dame Elizabeth Gloster anticipates completing the report by the end of July/early August 2020. Taking account of the requirement to go through the Representations Process, her revised target date for completion of her investigation would be September 30, 2020.

In his response, Charles Randell of the FCA notes that, in the context of the uncertainty created by the Covid-19 pandemic, he can confirm that the FCA has no objection to the proposed extension to September 30, 2020.

The FCA must inform HM Treasury of the reason for the delay in the conclusion of the investigation and the revised target date.

As FinanceFeeds has reported, FSCS said in February that it paid just under £2.7 million to 135 LCF customers in relation to 151 bonds. These bonds were invested following transfers out of stocks and shares ISAs.

In May, the FSCS said it expects to complete the process of reviewing claims relating to misleading advice given to LCF customers by the end of September.