UK city watchdog failed to regulate firm that wiped out investors' £236m
FCA’s ‘significant weaknesses’ led to lack of oversight of London Capital & Finance before it collapsed last year, inquiry finds
The UK’s financial watchdog failed to properly supervise and regulate London Capital & Finance before the firm collapsed and wiped out the savings of thousands of people, an independent inquiry has concluded.
The government-backed investigation, led by the former high court judge Dame Elizabeth Gloster, identified “significant gaps and weaknesses” in the Financial Conduct Authority’s policies and practices, and said the watchdog ultimately failed to make sure that LC&F was following the rules. More than 11,600 people had invested a total of £236m when LC&F collapsed last year.