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<p>On 1 April, the Government announced it will direct the Financial Conduct Authority
(FCA) to launch an investigation into the events and circumstances surrounding the
failure and placing into administration of London Capital and Finance plc (LCF). This
followed a request from the FCA Chair, Charles Randell, to launch such an investigation.</p><p>
</p><p>On 23 May 2019, the Government laid a direction before Parliament setting out
the terms of the investigation. Alongside this, the Government announced it will separately
review the wider policy questions raised by this case.</p><p> </p><p>Although operationally
independent, the Financial Services Compensation Scheme (FSCS) and the FCA are both
accountable to HM Treasury and to Parliament. My officials and I engage with the FCA
and FSCS on an ongoing basis, and HM Treasury continues to work with the relevant
bodies on the failure of LCF as a matter of priority. The FSCS is also continuing
work to increase awareness and understanding of FSCS protection.</p>
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