MPs on the powerful Treasury select committee today told of their frustration at the delay of a key report into the London Capital & Finance scandal.
Dame Elizabeth Gloster is probing potential failures in regulation that allowed 11,600 people to persuaded to invest in the high-interest rate bonds sold by LCF before it collapsed owing leaving them in fear for their savings.
Today she admitted she now not be able to complete her investigation by 10 July as planned and would now be submitting it on 30 September.
The report was ordered by the Treasury after the Committee of MPs, then chaired by Nicky Morgan, reviewed investigations into the scandal by the Evening Standard suggesting regulation had been badly found wanting.
Mel Stride MP, Chair of the Treasury Committee, said: “The previous Treasury Committee pressed the need for an investigation into events at LC&F.
“When the Treasury rightly used its powers to direct the FCA to commission a review last year, my predecessor urged the regulator and the Treasury to ensure that the investigation was conducted and report published as soon as possible.
“The delay in the investigation is particularly concerning. As Dame Elizabeth has said, the decision to delay may cause anguish to those who invested in LC&F.
“We will want to get to the bottom of what role the FCA had in the delay when we next take evidence from them.”
Notes to Editors
· The FCA has today published an update on the investigation here, and below:
Dame Elizabeth Gloster wrote to the FCA on 15 May 2020 advising that it would not be possible for her to complete her investigation by the target date of 10 July 2020. Her letter sets out the reasons for the delay and proposes a revised target date for completion of 30 September 2020. Charles Randell, Chair of the FCA, replied on 26 May confirming that the FCA has no objection to the proposed extension and will continue to work with Dame Elizabeth to deliver to this timescale.
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