The comments made by Pat McFadden, the Shadow Economic Secretary to the Treasury, on 17 December 2020.
This scandal represents a shocking failure of supervision in which some people lost their whole life’s savings.
The primary responsibility lies with those who ran London Capital and Finance and misled investors. But many people trusted this company because it was regulated by the FCA, even if individual products were not, and that trust was breached.
It is only right that the Government has set up a compensation scheme. But this case raises broader questions about how the FCA regulates financial firms and the products they sell, especially when its responsibilities are about to expand significantly after Brexit.