The Financial Conduct Authority "can't be responsible for everything", a leading Treasury official conceded, as the government opens the door to tougher legal action over online investment scams.

Amid an explosion in fraudulent investments being promoted through social media platforms during the pandemic, City minister John Glen told lawmakers that while the FCA has "a significant role to play" in stopping hundreds of millions being funnelled to scammers, the government had to drive through a tougher legal framework to affect real change.