The FCA has admitted it is “frustrated by the limitations” of its legacy technology systems, which it partly blamed for the further delay of an investigation into its handling of a collapsed mini-bond provider.
Chair of the FCA Charles Randell says the regulator remains committed to cooperating in an “open and transparent manner” with the independent investigation looking into its actions surrounding London Capital and Finance.
The regulator highlighted that it has responded to more than 75 information requests from the investigation team, being led by former Court of Appeal judge Dame Elizabeth Gloster.
It has also provided around 45,000 documents since the investigation was launched, but it has been hampered retrieving information due to limitations in the systems.
Randell says: “This is being addressed through a multi-year and multi-million-pound investment programme. We will continue to conduct assurance work to ensure that any gaps in information are identified and remedied.”
And he said he is mindful that many LCF investors will “understandably be very disappointed” about the further delay to the delivery of the investigation report.
This is now expected to be published by 23 November, after being pushed back from 10 July and then again from 30 September.
London Capital and Finance went into administration in January 2019, owing a total of £237m to 11,600 investors.
In May last year, the Treasury directed the FCA to set up an independent investigation to consider the FCA’s actions when regulating the company.
Gloster has stressed the investigation is funded by the FCA and not the affected bondholders but it will have “no control” over the conclusions she reaches.
She says: “The investigation will generally examine the FCA’s actions, policies and approach when acting as the regulator for London Capital and Finance.”
The investigation will consider whether the FCA “adequately discharged its functions” and whether the regulator “effectively fulfilled its responsibilities”.
It will also look at if the FCA “properly supervised and monitored” LCF’s compliance with its rules and policies.
Senior members of the FCA are being interviewed as part of the probe.
A parallel investigation is being run by the Financial Services Compensation Scheme, which has started returning money to some bondholders.
