By Roger Baird on Friday 26 July 2019
Dame Elizabeth Gloster is ‘keen to hear from as many of those affected as possible’.
The head of the inquiry into the conduct of the City watchdog in the run up to the collapse of investment firm London Capital & Finance (LCF) has appealed to small investors to come forward.
Dame Elizabeth Gloster will lead the investigation into the January failure of LCF and the quality oversight shown by the Finance Conduct Authority (FCA).
The Southampton-based investment firm sold high-risk mini-bonds, despite advertising its product as a low-risk individual savings allowance, its failure left around 11,500 small investors facing as much as £236m of losses.
Investor groups said the FCA should have stepped in and forced LCF to properly outline its risky products to unsuspecting backers.
The Serious Fraud Office opened a criminal investigation into individuals associated with LCF, which has led to five arrests.
Dame Elizabeth said: “Many people have been badly affected by the failure of London Capital & Finance. There is rightly a great deal of interest in what happened at LCF and the role of the FCA. I am keen to hear from as many of those affected as possible and am grateful for the information I have already received from bondholders and others.”
Dame Elizabeth, who was appointed by the Economic Secretary to the Treasury in May, said once her independent support team has been appointed she would get in touch with affected groups.
The inquiry said it would “engage with bondholders, professional organisations and other interested parties”.
Dame Elizabeth added that groups and individuals could send her information by email, and that the FCA website will be regularly updated with details of her investigation.
The email for Dame Elizabeth Gloster is: IndependentInvestigation.LondonCapitalFinance@fca.org.uk. More information about the FCA can be found here.