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<p>This Government takes the failure of London Capital & Finance (LCF) and its
impact on consumers very seriously. HM Treasury officials have been in communication
with the Financial Conduct Authority (FCA) regarding LCF since January 2019. I wrote
to the FCA on its role in regulating LCF via the following letter of 1 April 2019:</p><p><a
href="https://www.parliament.uk/documents/commons-committees/treasury/Correspondence/2017-19/EST-to-Charles-Randell-FCA-010419.pdf"
target="_blank">https://www.parliament.uk/documents/commons-committees/treasury/Correspondence/2017-19/EST-to-Charles-Randell-FCA-010419.pdf</a></p><p>
</p><p>In this letter, I announced that I would order an investigation into the failure
of LCF, using Treasury powers under section 77 of the Financial Services Act 2012.
I want to make sure we have the strongest and safest financial system possible. By
ordering this investigation, we will better understand the circumstances around the
collapse of LCF and make sure we are properly protecting those who invest their money
in the future.</p><p> </p><p>The role of the Treasury in this investigation is set
out in sections 77 to 82 of the Financial Services Act 2012. It is essential that
the terms of the investigation are set in a way that ensures these objectives are
met and take into account any issues arising from current regulatory and enforcement
investigations. HM Treasury officials are working to develop these with the relevant
bodies as a matter of priority. Further details on this investigation, including its
duration and the reporting arrangements, will be published shortly.</p>
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