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MPs call for FCA to ‘change culture’ after London Capital & Finance collapse
London Capital & Finance collapsed in 2019 (Jonathan Brady/PA)
MPs have called for a “change in culture” at the UK’s financial regulator to protect consumers and financial markets following the collapse of mini-bond firm London Capital & Finance (LCF).
The Treasury Select Committee has also called for the Financial Conduct Authority (FCA) to confirm a deadline to enact a transformation programme to improve the organisation.
It comes a month after the FCA apologised to bondholders who lost millions of pounds invested in the collapsed mini-bond firm.
LCF failed in 2019 after raising £237 million from 11,000 small investors.
MPs have called for a “change in culture” at the UK’s financial regulator to protect consumers and financial markets following the collapse of mini-bond firm London Capital & Finance (LCF).
The Treasury Select Committee has also called for the Financial Conduct Authority (FCA) to confirm a deadline to enact a transformation programme to improve the organisation.
It comes a month after the FCA apologised to bondholders who lost millions of pounds invested in the collapsed mini-bond firm.
LCF failed in 2019 after raising £237 million from 11,000 small investors.
In December last year, a report by Dame Elizabeth Gloster found the FCA failed to properly regulate and supervise LCF and said the regulator must focus on improving internal authorisation and supervision processes.
By Huw Jones
LONDON – The collapse of London Capital & Finance showed how Britain’s Financial Conduct Authority appeared unable to meet standards of accountability it imposes on firms it regulates, a parliamentary report said on Thursday.
The report from the Treasury Select Committee said the FCA put an “over-reliance” on its collective responsibility for the investment firm’s failure in early 2019, rather than on accountability of senior officials at the regulator.
The FCA requires senior managers at regulated firms to be directly accountable for their actions to make it easier to punish individuals, a landmark reform that came out of the financial crisis.
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