FCA acknowledges harm caused by authorising firms 'not meeting standards'

Admits LCF a 'learning process'

Nikhil Rathi, chief executive of the Financial Conduct Authority, has said there is still “learning” to do regarding its application authorisation process in the wake of the London Capital & Finance (LCF) scandal.

He acknowledged that allowing a firm "which is not meeting the standards" into the market can cause significant problems further down the line. "We saw the case with LCF that a small firm can do a lot of harm," said Rathi, highlighting challenges the regulator faces when approving companies seeking to enter the market. The watchdog came under heavy criticism over its handling of the LCF scandal, with the Treasury Committee calling on the FCA to be more "interventionist". In December last year, the FCA said it was set to radically overhaul its processes and procedures with "signific...