The director of Newcastle upon Tyne-based Lowes Financial Management, and founder of structuredproductreview.com, denounced Reyker Securities in May over “unfair” charges levied on investors of the now-defunct Merchant Capital.
Mr Lowes alleged that fees imposed by Reyker on 12,000 private investors, and a subsequent lack of regulatory action, amounted to “unadulterated profiteering”.
Reyker, the former custodian of the investments, took over their administration when Merchant Capital went into administration in January.
Mr Lowes claimed that investors were subject to demands for payments of £15 to transfer to Reyker and had been threatened with additional penalties if these payments were not received.
A further charge of a minimum of £75 per account has also been imposed, payable from the maturity proceeds of the product.
He said the fees were “far in excess of what would be commercially acceptable, and should not be allowed by a regulator that has a stated aim of protecting customers”, and has now taken the fight to his local MP, Catherine McKinnell, the Labour member for Newcastle North, and shadow exchequer secretary to the Treasury.
Her spokesman said she was in the process of taking up the matter with both Greg Clark, the financial secretary to the Treasury, and the FCA.
Despite repeated attempts, no-one has been available for comment at Reyker Securities. A spokesman for the FCA has said it does not comment on individual cases.
