London Capital and Finance

Treasury written question – answered on 9th May 2019.

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Photo of Jon Trickett Jon Trickett Shadow Minister (Cabinet Office), Shadow Lord President of the Council

To ask the Chancellor of the Exchequer, what role his Department will play in the investigation announced by the Economic Secretary on 1 April 2019 into the events at London Capital & Finance and the circumstances surrounding them.

Photo of Jon Trickett Jon Trickett Shadow Minister (Cabinet Office), Shadow Lord President of the Council

To ask the Chancellor of the Exchequer, when the investigation into the events at London Capital and Finance and the circumstances surrounding them announced by the Economic Secretary on 1 April 2019 will be completed; and whether the report of that investigation will be published.

Photo of Jon Trickett Jon Trickett Shadow Minister (Cabinet Office), Shadow Lord President of the Council

To ask the Chancellor of the Exchequer, when his Department first had discussions with the Financial Conduct Authority on its performance in regulating the activity of London Finance and Capital.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

This 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. I wrote to the FCA on its role in regulating LCF via the following letter of 1 April 2019:

https://www.parliament.uk/documents/commons-committees/treasury/Correspondence/2017-19/EST-to-Charles-Randell-FCA-010419.pdf

In this letter, I announced that I would order an investigation into the failure of LCF, using Treasury powers under section 77 of the Financial Services Act 2012. I want to make sure we have the strongest and safest financial system possible. By ordering this investigation, we will better understand the circumstances around the collapse of LCF and make sure we 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. 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.

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