MPs have slammed Andrew Bailey for his handling of the of the London Capital & Finance scandal.
LCF went bust in January 2019 – when the Bank of England governor was head of the Financial Conduct Authority – leaving 11,600 investors who bought unregulated mini-bonds from the firm facing losses of up to £237million.
The scandal came despite the FCA first being alerted to the problems as early as 2016.
LCF went bust in January 2019 – when Bank of England boss Andrew Bailey (pictured) was head of the Financial Conduct Authority – leaving 11,600 investors facing losses of up to £237m
MPs on the Treasury committee said in a report published today that the FCA board and senior management had failed to meet regulatory standards when handling the crisis.
The report said: ‘There are doubts as to whether the FCA board has met the standards which it seeks to impose on others.’
The report added the FCA must change its culture to protect consumers and financial markets in the future.
The FCA is trying to turn itself around under boss Nikhil Rathi, who took over from Bailey in 2020.
The Committee wants a deadline set for the turnaround.
An FCA spokesman said: ‘We have said we are profoundly sorry for the mistakes we have made over LCF and are committed to implementing the recommendations of The Gloster Report which are progressing at pace.’
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