Source · Select Committees · Treasury Committee
Recommendation 20
20
The FCA recognises that it has a statutory duty to protect customers from fraud.
Conclusion
The FCA recognises that it has a statutory duty to protect customers from fraud. In the case of LCF, the regulator fell short, due to a culture that saw fraud as principally a matter for the police, and its lack of enthusiasm to look beyond the perimeter. Dame Elizabeth recommended that “the FCA should ensure that its training and culture reflect the importance of the FCA’s role in combatting fraud by authorised firms.” We note the steps the FCA has taken to address the culture of dealing with fraud, including training staff and launching another phase of its Scamsmart campaign. (Paragraph 122) The Financial Conduct Authority’s Regulation of London Capital & Finance plc 51
Government Response
Not Addressed
HM Government
Not Addressed
We welcome the Report and appreciate the Committee’s scrutiny. I would like to repeat the apology made by our Chair for the errors the FCA made in our handling of this case. We know that London Capital & Finance’s (LCF’s) collapse has had a significant impact on the lives of many individuals who invested money they could not afford to lose. My colleagues and I will learn from the mistakes that have been made. As you are aware, we accepted and have committed to implementing the recommendations which Dame Elizabeth Gloster made for the FCA. On 15 July we published and shared with the Committee an update on our implementation. This sets out progress to date, including on staff training, strengthening processes and policies, and improving how we share and use information.