Bank of England governor Andrew Bailey has apologised after an independent report severely criticised the City regulator that he led at the time of a £237 million investment scandal.
The report found the Financial Conduct Authority (FCA) was “wholly deficient” in the oversight of minibond provider London Capital & Finance (LCF).
Former Court of Appeal judge Dame Elizabeth Gloster found there had been “significant gaps and weaknesses” in the FCA’s practices and policies.
LCF’s demise in early 2019 left 11,600 investors in mini-bonds facing losses of up to £237 million.
Mr Bailey was chief executive of the FCA, which regulates thousands of financial firms, from 2016 to 2020 before taking over from Mark Carney at the Bank of England.
In response to the report, Mr Bailey issued a statement apologising to LCF investors.
He said when he took over at the FCA in 2016 it was clear that “substantial reform” in the way it supervises many firms was needed and that immediate steps were taken “to change the approach”.
