LC&F collapse calls the regulator's competence into question Nils Pratley

The now bust purveyor of ‘mini bonds’ left 11,500 ordinary
investors £236m out of pocket

The official investigation into
the collapse of London Capital & Finance
, the investment
firm that went bust owing £236m to 11,500 ordinary savers, is the
most important financial inquiry since the banking crisis. As with
the broken banks, the central questions aren’t simply about how
to fix the regulatory system. The basic competence of the regulator
– the Financial Conduct Authority – is also in the
spotlight.

Dame Elizabeth Gloster, a former court of appeal judge,
will lead the inquiry
and, as far one can tell, is a good
independent appointment. Her former career included wading through
Russian oligarchs’ complex multibillion claims against each
other. Getting to the bottom of LC&F’s world of “mini
bonds” ought to be a breeze, provided she gets the right
secretariat.

Source: FS – All-News2-Economy
LC&F collapse calls the regulator's competence into question Nils Pratley