Mel Stride, chairman of the Commons’ Treasury Select Committee, said the Financial Conduct Authority (FCA) and the Treasury are “engaging” with many ideas after the failure of London Capital and Finance (LCF).

But ministers have not yet made clear how they will stop fraudulent marketing – such ads have appeared at the top of results for investors searching online for where to put their money.

LCF trapped £237million belonging to 11,000 small investors. Its failure in 2019 led to a public inquiry and the taxpayer faces a reimbursement bill of around £120million. The MPs’ call for scam ads to be banned in the Online Safety Bill has been backed by the FCA, it was revealed today.

The Treasury said the Government is considering tougher regulation.

But Mr Stride countered: “To prevent fraud in the future, this is an issue which must be addressed.”

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