Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Britain rejects calls to expand watchdog powers after London Capital collapse

Stock Markets Oct 10, 2019 07:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Britain rejects calls to expand watchdog powers after London Capital collapse

By Huw Jones

LONDON (Reuters) - Britain has rejected calls from lawmakers to give regulators more powers to protect consumers from unregulated investment products as thousands face losing money on "mini-bonds" bought from London Capital & Finance (LCF), which collapsed in January.

The government said it would, however, fast-track conclusions from its review of collapse of LCF that left 11,500 bondholders likely to lose most of their 237 million pounds in investments.

Parliament's Treasury Select Committee (TSC) said in August that the failure of LCF showed the Financial Conduct Authority (FCA) needed powers to formally recommend extending its remit to cover unregulated parts of the financial system.

The FCA can only comment on activity around the so-called regulatory perimeter.

"Decisions on which activities should be within the perimeter of regulation should ultimately be for ministers, with approval by parliament," the government said in a response to the TSC on Thursday.

It also rejected calls to give the FCA powers to ask companies it does not regulate for data on their activities. LCF itself was regulated, but the mini-bonds it sold to raise funds for companies, were not.

"Asking the FCA to gather and process data from unauthorized firms would add significantly to the FCA's supervisory responsibilities and have considerable resource implications," the government said.

It said it was working with the FCA to consider if further steps were needed to ensure that consumers understand the risks of buying unregulated products as part of its response to LCF.

"The conclusions of the government's work in response to the failure of London Capital & Finance, including on the financial promotions regime, will be brought forward as soon as possible," the government said.

Britain rejects calls to expand watchdog powers after London Capital collapse
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email