Investigation into FCA’s regulation of London Capital & Finance set for further delay

Maria Nikolova

Dame Elizabeth Gloster has shifted the target date for completion of her investigation for November 2020.

The latest correspondence between Dame Elizabeth Gloster and Charles Randell, Chair of the FCA, brings no positive news for those affected by the collapse of London Capital & Finance. As FinanceFeeds’ readers may recall, the deadline for the completion of the investigation into the FCA’s regulation of LCF was pushed until September 30, 2020. Now, the procedure is set for further delay.

A letter sent by Dame Elizabeth Gloster to Charles Randell on August 21, 2020, focuses on the revised timetable for completion of her investigation and the reasons for the further delay.

Dame Elizabeth Gloster explains that, since her 15 May letter, the FCA has produced a large volume of documentation that should have been provided previously and, in addition, senior FCA employees have, during the course of interviews, relied heavily on two change programmes (the relevance of which had not been highlighted before June 2020) in explaining the FCA’s regulation of LCF during the Relevant Period.

Reviewing and considering these new issues has required a significant amount of work. That is why the target date for delivery of Dame Elizabeth Gloster’s report is revised.

Assuming there are no other significant developments, the report should be delivered on or before Monday, 23 November 2020.

“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 about the further delay in the delivery of my report. It is therefore important for all stakeholders that I should be able to deliver a comprehensive report on these important issues as soon as possible. My team will make every effort to ensure that no further amendments to the timetable are necessary”, Dame Elizabeth Gloster says.

In the end of July, the UK Financial Services Compensation Scheme (FSCS) provided an update to customers of LCF. The Scheme has increased the rate at which it is issuing decisions to LCF customers. It has now issued 844 decisions and paid out over £13.5 million in compensation, and it expects the volume of decisions to increase further in the coming months.

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