Bailey feels heat as LCF victims voice anger

FINANCIAL watchdog boss Andrew Bailey has come under fire from victims of London Capital and Finance (LCF) who demanded answers about the mini-bond seller’s collapse and potential compensation at the Financial Conduct Authority’s annual public meeting in London yesterday.

He said the watchdog was aware of the “worrying situation” and the “risk” that customers’ cash might not be recovered, before chairman Charles Randell confirmed that an independent review into the failure of LCF and its selling practices would not conclude until next summer.

One attendee – a pensioner who lost a chunk of his savings by investing in LCF products – said customers were worried they would be compensated only if they could prove they had received inappropriate financial advice.

Last month, the Financial Services Compensation Scheme said it may compensate LCF customers if it found evidence of misleading advice.

At the meeting, Mr Bailey said the collapse of LCF proved that the “old regime” that distinguished regulated firms from regulated products and associated promotional activity was not working as the watchdog intended.

He also spent time discussing the new “regulatory perimeters” designed to look specifically at products or examples that would normally fall outside the regulator’s remit.

The meeting ended with cries of “crooks!” from disgruntled audience members, with one shouting “you should all be in jail”, as Mr Bailey thanked the audience for attending.

At a press conference he declined to answer whether he had been interviewed for the job of Bank of England governor.