WE WILL LEAVE NO STONE UNTURNED TO BRING LCF CULPRITS TO JUSTICE

BRITAIN has one of the most successful and robust financial services sectors in the world.

Part of that success is down to it being well-regulated, with a clear set of rules and laws that firms must follow.

This is something we should be proud of.

Yet this also makes the recent collapse of London Capital & Finance all the more concerning.

When the firm went into administration in January, it meant that hard working people could suffer losses on their investments, with consequences for their life savings.

If they were indeed misled about the risks of these investments, then it is even more heart-breaking.

Individuals associated with the firm are now under investigation to find out whether they mis-sold these products. It is critical that anyone found to be breaking the law faces punishment. Of course, there are wider questions and issues about the overall system that we must now answer.

I want to fully understand the events surrounding the collapse of LC&F.

That’s why on April 1 I announced that I would direct the regulator – the Financial Conduct Authority – to set up an independent investigation into the circumstances around LC&F and the regulation of its activities. This week will see that investigation launch, with Dame Elizabeth Gloster appointed to lead this work.

I have seen concerns from those affected by LC&F and those campaigning for them that this investigation won’t be robust enough – that it will whitewash over any issues uncovered and simply allow the same mistakes to be made again.

I want to reassure people that I will not let this happen. Not only will this investigation be thorough and independent, I have also announced that the Treasury will carry out an urgent wide-ranging review of the market for products like those sold by LC&F, to make sure that the rules are fit for purpose.