Danny McCance 26 Jul 2019 01:23pm

LCF investigation expands scope

Dame Elizabeth Gloster has announced she will expand her investigation into the collapsed London Capital and Finance (LCF)

She will speak with bondholders, professional organisations and other interested parties “in an organised and structured way” to address any issues relevant to the investigation.

LCF collapsed into administration in January with £236m of losses and is now under investigation by the Financial Conduct Authority (FCA) and the Serious Fraud Office.

The Treasury subsequently ordered the FCA to open an investigation, which was launched in May and Dame Elizabeth appointed.

The investigation will look into whether the FCA fulfilled its statutory objectives in relation to LCF and whether it exercised its powers appropriately.

The FCA yesterday announced that after the independent team has been fully assembled it will begin to engage with bondholders’ groups and others to determine the most useful avenues of investigation.

“There is rightly a great deal of interest in what happened at LCF and the role of the FCA,” Dame Elizabeth said.

“I am keen to head from as many of those affected as possible and am grateful for the information I have already received from bondholders and others”.

She urged anyone with information to come forward to the FCA.

The authority has also published the protocol for the investigation with updates on.

In April, reports showed that LCF rotated between three separate auditors in the three years in the lead up to its collapse in January.