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<p>Where such investigations are conducted, HM Treasury take steps to ensure their
independence which is crucial to the integrity of their conclusions. For example,
in the recent case of the events surrounding the failure of London Capital & Finance
plc (LCF), and following a request from the Financial Conduct Authority (FCA), the
Economic Secretary to the Treasury required that an independent investigation be carried
out under powers in section 77 of the Financial Services Act 2012.</p><p> </p><p>The
Economic Secretary approved the appointment of Dame Elizabeth Gloster, an experienced
QC and Judge at the High Court and Court of Appeal, to lead it. Prior to this approval,
potential conflicts of interest were investigated and HM Treasury is satisfied that
Dame Elizabeth is independent from the FCA, HM Treasury and the companies and individuals
associated with LCF’s failure.</p><p> </p><p>Under the terms of the Economic Secretary’s
Direction to the FCA, Dame Elizabeth has the discretion to appoint a team which is
entirely independent of the FCA. A process is now underway to appoint an independent
legal team to support Dame Elizabeth in her investigation. The FCA is also under a
duty to facilitate the disclosure to Dame Elizabeth any information that she deems
relevant to the scope of her investigation. Should Dame Elizabeth wish to raise any
matters directly to HM Treasury, she can do so at any time, under the terms of the
Direction, via an interim report.</p>
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