FSCS asks customers of two liquidated firms to come forward

FSCS asks customers of two liquidated firms to come forward

The Financial Services Compensation Scheme has asked the customers of two liquidated firms to come forward to help with its ongoing investigation into the firms’ conduct.

The investigation will decide if individuals who invested through the two firms, Cavendish Incorporated Ltd and Marvell Enterprises Limited, are due compensation. 

Neither company have ever been permitted to provide regulated investment services.

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Both London-based firms have not currently been declared in default, however the Financial Conduct Authority has taken action against them and six others as they are believed to be a risk to consumers. 

Clients of the firms invested funds into ISAs, convertible bonds and loan notes issued by Cavendish.

These investments were made directly through Cavendish, via its former appointed representative Cottesmore Associates Ltd, and through Marvell Enterprises.

However, none of these companies were authorised by the FCA to provide regulated advice on investments.

The FSCS said: “Evidence that former customers provide could be vital for our investigations.”

Cavendish was flagged to the FSCS in May this year, when a number of customers alleged it gave unsuitable advice in connection with investments.

Following this the FCA imposed requirements on Cottesmore Associates in August and has also taken action against the other firms associated with the businesses.

The other firms liquidated alongside Cavendish and Marvel Enterprises were: 

  • Cottesmore Associate Ltd
  • Grosvenor Associates Ltd 
  • Renaissance Advisory Ltd
  • Falcon Financial Solutions Ltd
  • Thestral Financial Services Ltd
  • Semantic Business Services Ltd