The FCA has reported that eight firms who appeared to have connections to each other and may have advised on substantial investment sums have entered liquidation following several warnings from The Financial Conduct Authority (FCA.
The firms failed to respond to communications from the FCA and they state;
"We believe they pose a significant risk to consumers and took action to prevent these firms from causing further harm to consumers so that, if the firms hold any assets, they can be recovered for the benefit of anyone owed money by the companies," the watchdog said.
The firms are:
- Cavendish Incorporated
- Cottesmore Associate
- Marvell Enterprises
- Grosvenor Associates
- Renaissance Advisor
- Falcon Financial Solutions
- Thestral Financial Services
- Semantic Business Services
In 2021 the watchdog had warned Cavendish Incorporated and Cottesmore Associate after it had appeared the firms carried out investment-related activities with consumers without FCA permission to provide regulated services.
Consumers may have invested substantial funds in bonds or loan notes issued by Cavendish or through its former appointed representative Cottesmore, the regulator said at the time.
In November 2021, the FCA published a warning against Marvell and said consumers "may have been misled about the scope of Marvell's permissions and the protection afforded to their investments". Its permissions were subsequently removed.
In early December 2021, the regulator expressed concerns that Grosvenor Associates, a firm connected to Marvel, would also be offering investments to customers.
Later that month, it published a consumer warning against Renaissance Advisory, another company connected to Marvel.
In January 2022, permissions were removed from Falcon Financial Solutions and Thestral Financial Services. The FCA said at the time investors could lose all their money if they invested in them.
A few months later, in April 2022, Semantic Business Services lost its permission to carry out any regulated activities. The pattern of issues and regulatory intervention left the FCA with little alternative.
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