Eight firms have been liquidated after a number of petitions by the Financial Conduct Authority.
The companies, which the regulator said all have links to each other, have never been permitted to provide regulated investment services.
The firms all failed to respond to communications from the FCA, which the regulator said in a statement on Friday (November 11) that it believed they posed a “significant risk” to consumers.
The firms are:
- Cavendish Incorporated Ltd
- Cottesmore Associate Ltd
- Marvell Enterprises Ltd
- Grosvenor Associates Ltd
- Renaissance Advisory Ltd
- Falcon Financial Solutions Ltd
- Thestral Financial Services Ltd
- Semantic Business Services Ltd
Despite having had no permission to provide regulated investment services, the FCA said it was aware that consumers may have invested sums in at least two of the firms, Cavendish and Marvell.
The FCA said: “We took action to prevent these firms from causing further harm to consumers and so that, if the firms hold any assets, they can be recovered for the benefit of anyone owed money by the firms.”
The Financial Services Compensation Scheme is considering claims against these firms, and has set up specific online pages for Cavendish and Marvell.
The firms have all been passed onto the official receiver, which will wind up the firms and liquidate any assets.
The companies, which are thought to be a group of credit brokers, have already faced regulatory action, after Grosvenor Associates had its permissions removed in December and Cottesmore Associates had requirements imposed in August.
Falcon Financial Solutions and Thestral Financial Services, were no longer permitted to carry out any regulated activities.
At the time the watchdog warned those invested in either firm are now at risk of losing all of their money.
Falcon and Thestral were controlled by the same individual, Bhupinder Rehal. According to the FCA, Falcon is “connected” to Cavendish Incorporated.
Cavendish was then flagged to the FSCS in May this year, when a number of customers alleged it gave unsuitable advice in connection with investments.
sally.hickey@ft.com
