In 2004, Gloster was the first woman to be appointed as a commercial court judge and was previously a Lady Justice of the Court of Appeals until her retirement in May 2018.
She currently practices as an international commercial arbitrator.
The Financial Conduct Authority confirmed on 28 March that it would review the collapse of the minibond provider.
In a bureaucratic twist, the FCA requested that the Treasury order it to conduct the investigation.
The financial watchdog said this was done to “ensure that the review has a broad and comprehensive remit”.
On Thursday, Charles Randell, chair of the FCA, said: “This investigation will establish what happened with LC&F and whether further changes are required. It will support the broader review of minibond regulation.”
“[She] brings independence and extensive experience to the task,” Randell added. “And the FCA will ensure that she has all the access and support she needs to conclude her work as quickly as possible.”
LC&F took £236m ($313.3m, €276m) of investors’ funds after issuing “misleading” minibonds and Isas on a non-advised basis, promising 8% returns to clients.
Minibonds allow investors to lend money directly to businesses and are, in effect, IOUs that the companies sell to investors.
The Financial Services Compensation Scheme (FSCS) has opened a registration process for customers but it has not yet determined whether they have grounds for compensation.
If customers went direct, they are not covered – but if the minibond was recommended by an adviser there may be recourse for some to recoup some money.