UK Economic Secretary says details on investigation into London Capital & Finance to be published shortly
John Glen faces an increasing volume of questions regarding the investigation into London Capital & Finance.
The collapse of London Capital & Finance has resulted in some heavy pressure on UK authorities regarding the regulation of mini-bonds and compensation matters related to the failure of the firm.
On Thursday, May 9, 2019, John Glen, Economic Secretary to the Treasury, replied to questions related to investigations into the collapse.
Jon Trickett of Hemsworth has asked the Chancellor of the Exchequer, what role his Department will play in the investigation announced by the Economic Secretary on April 1, 2019 into the events at London Capital & Finance and the circumstances surrounding them.
On Thursday, John Glen reiterated that the Government takes the failure of London Capital & Finance (LCF) and its impact on consumers very seriously.
“HM Treasury officials have been in communication with the Financial Conduct Authority (FCA) regarding LCF since January 2019”, John Glen said.
He wrote to the FCA on its role in regulating LCF via a letter of April 1, 2019.
In this letter, John Glen announced that he would order an investigation into the failure of LCF, using Treasury powers under section 77 of the Financial Services Act 2012. He says he wants to make sure the UK would have the strongest and safest financial system possible. By ordering this investigation, the UK authorities are set to better understand the circumstances around the collapse of LCF and to make sure they are properly protecting those who invest their money in the future.
The role of the Treasury in this investigation is set out in sections 77 to 82 of the Financial Services Act 2012, the Economic Secretary explained.
“It is essential that the terms of the investigation are set in a way that ensures these objectives are met and take into account any issues arising from current regulatory and enforcement investigations. HM Treasury officials are working to develop these with the relevant bodies as a matter of priority. Further details on this investigation, including its duration and the reporting arrangements, will be published shortly”, John Glen says.
Recently, the Economic Secretary to the Treasury made a statement that offered little consolation to those affected by the demise of the firm with regard to any compensation in store for them.
“LCF’s investors are unlikely to have access to the Financial Services Compensation Scheme (FSCS). However, this would be for the FSCS to determine as an independent body from both HM Treasury and the Financial Conduct Authority”, John Glen said.
