The head of an independent probe into the supervision of London Capital & Finance (LCF) has urged those affected by the collapse of the mini-bond provider to reach out.
LC&F went into administration in January after the regulator ordered it to halt its regulated activity and stop marketing products. The FCA estimates 11,000 people had invested £237m through the bonds.
International arbitrator Dame Elizabeth Gloster is heading up the investigation into the Financial Conduct Authority's (FCA) regulation of the firm prior to its collapse.
Many people have been badly affected by the failure of London Capital & Finance"
Dame Gloster aims to engage with bondholders, professional organisations and other interested parties in an "organised and structured way". Once she has established her independent team, they will get in touch with those individuals and groups to discuss how the investigation can best engage with then.
She said: "Many people have been badly affected by the failure of London Capital & Finance. There is rightly a great deal of interest in what happened at LCF and the role of the FCA.
"I am keen to hear from as many of those affected as possible and am grateful for the information I have already received from bondholders and others. I would encourage anyone who wants to engage with the investigation to get in touch with me."
Issuing mini-bonds is not a regulated activity so LCF did not need to be authorised by the FCA. When an authorised firm approves a promotion for mini-bonds, however, it must ensure it is in line with FCA rules that the financial promotion is fair, clear and not misleading. This means, for example, that risks are "appropriately communicated".
The FCA has been criticised for missing red flags about LCF's business model, prompting an independent probe. However, The former Court of Appeal judge conducting the investigation into the UK's financial watchdog's failings has no powers to force regulators to attend an interview.
The Financial Conduct Authority and any individuals singled out for criticism by Elizabeth Gloster will also be allowed to make comments on her draft findings that she must take into account before her final report is published, according to a protocol that lays out guidelines for her investigation, the FT reports.
Individuals impacted by the failure of LCF can send any relevant information via email. The email address is [email protected] and will only be accessed by Dame Elizabeth Gloster and her team.