MPs want to shake the watchdog

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The city's House of SLOTXO
Representatives needs a change of culture and greater mobility to prevent the London Capital and Finance (LCF) recurrence of the story, said MPs.

Around 11,625 people invested a total of £237 million in the LCF before it collapsed in management.A judge-led review criticized the Financial Conduct Authority (FCA) for its failure in the case.

Now, the Treasury Committee of the House of Representatives has said the FCA needs to move forward to protect consumers.

The committee has made a number of recommendations. Primarily to support faster culture change at regulators. and faster compensation for those who lose money.

Mini Bond Claims

Many people who put their money into the LCF are first-time investors. including heirs small business owner or recently retired

They believe they are putting their money into a secure, fixed-rate ISA. which is approved by the FCA

Indeed, the LCF is approved, but the product - which is a high-risk mini-bond - is not.The LCF offers a yield of about 8% on a small 3-year bond.

The FCA ordered the LCF to withdraw the market, and after further investigation The LCF's assets were then suspended, which caused the company to collapse in management in January 2019.