The independent review conducted by Raj Parker of the Financial Conduct Authority’s (FCA) regulation of the Connaught Income Fund Series 1 has been published today. Connaught was an unregulated collective investment scheme providing short-term bridging finance to commercial operators in the UK property market. The review concluded that “the Regulator’s regulation of the relevant entities and individuals connected to the Fund was not appropriate or effective…I recognise that the Regulator’s approach may not have been at material variance from the regulatory orthodoxy at the time in some respects, but overall it remains my view that it could have acted in a more effective way to protect investors in the Fund.” The review identified five key lessons for the FCA.
The FCA Response to the independent review stated “we are sorry for the errors we made in this case. We accept and will implement all the Connaught Review’s recommendations“. The FCA has also explained the changes they have made since the key events which took place between February 2007 and March 2015 and set out the further work planned in response to the recommendations.
FCA press release