Bailey on the first day as Bank of England governor in London on March 16, 2020. Bailey apologised to LCF bondholders over the fund’s collapse. – REUTERSPIXBank of England governor Andrew Bailey came under fire on Thursday after an independent report said Britain's markets watchdog, which he led at the time, had failed to supervise a fund properly before its collapse last year.
"The investigation has concluded that the FCA did not discharge its functions in respect of LCF in a manner which enabled it effectively to fulfil its statutory objectives," the report said. "Responsibility for the failure in respect of the FCA's approach to its perimeter rests with the executive committee and Mr Bailey," the report said.
"We are very sorry for the errors we made in our handling of this case," the FCA said. The watchdog's new chief executive Nikhil Rathi said the report made"sobering reading" and he was committed to implementing its nine recommendations.