The Financial Conduct Authority has issued a notice to inform advisers and their clients that Brookbourne Trading Limited is operating a “scam property fund” and has been accepting deposits from consumers without authorisation.
The High Court granted the regulator an injunction on 15 April preventing Brookbourne from taking more deposits as well as freezing its assets.
While the FCA stated it will do everything it can to try to return money to Brookbourne’s investors, its experience with this type of scheme is that consumers only receive back a small fraction of what they invested.
Unfortunately, they will not have access to the Financial Services Compensation Scheme if they suffer losses, as Brookbourne is not an FCA-authorised firm, the regulator said.
The fund operates out of an address on 288 Bishopsgate in London and still has a fully operational website describing it as “a leading global wealth management group and the preeminent UK-based investment corporation with a worldwide reach”.
Established in 2009, according to the site, it states that the firm is “in the business for the long haul and set out to build a personal relationship with each and every one of our clients founded on trust and performance”.
All projects are apparently “subject to rigorous independent due diligence” with “potential concerns related to capital security” overcome by ensuring all funds are handled solely by “reputable registered UK banking institutions”.
peter.walker@ft.com
