Investors with money held in the Connaught Income Series one fund, which was an unregulated investment scheme, are now able to obtain some compensation by going through a number of other regulatory bodies.
In an update published on Friday (29 January) the Financial Conduct Authority said that on 10 March 2015 it decided formally to investigate the activities of Capita and Blue Gate in connection with their roles as operators of the fund.
The FCA noted in its update that this investigation will continue independently of the settlement of the civil legal action between the liquidators of the fund and Capita, stating “we continue to devote significant time and resource to the investigation”.
Due to the nature of the underlying events and the complex issues involved, the regulator said it was unable at this stage to say how long it will take to conclude its investigation.
As such, at this stage no decision can be taken on whether to exercise statutory powers to obtain redress for investors.
However, the update noted that complaints can be made to one or more of the authorised firms involved in the fund, for example because investors are dissatisfied about investment advice received or the operation of the fun.
The FCA said in its update that complaints should be made as soon as possible, and that in delaying investors may lose rights to have complaints considered by the firm and by the Financial Ombudsman Service.
If the authorised firm is not able to pay claims against it, investors may be able to recover compensation from the Financial Services Compensation Scheme up to £50,000 per investor, per authorised firm.
The regulator added that given that the fund was launched in April 2008 and was suspended in March 2012, investors should consider the time limits for making complaints and claiming compensation as a matter of urgency.
Investors may also wish to seek independent advice, the FCA added.
ruth.gillbe@ft.com
