Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether Surge Financial was required to be regulated by the FCA when promoting London Capital and Finance’s (LC&F) mini-bonds, following the FCA's granting of regulated accreditation to LC&F on 7 June 2016 for promotional activities and not products.

On 1 April, the Economic Secretary announced that he will use powers under the Financial Services Act 2012 to direct the Financial Conduct Authority (FCA) to launch an investigation into the events at London Capital & Finance and the circumstances surrounding them. This followed a request from the FCA Chair, Charles Randell, to the Economic Secretary to launch such an investigation.

The investigation will be led by an independent person appointed by the FCA, with the approval of HM Treasury. Further details of the independent investigation, including its terms, will be communicated in due course.