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24 May 2022 | Comment | Article by Neil Stockdale

Firms under investigation by the FSCS and FCA after providing unregulated investment advice to customers

A credit broker, Cavendish Incorporated and its former Appointed Representative and introducer, Cottesmore Associates are being investigated by the Financial Services Compensation Scheme (FSCS). This follows a Consumer Warning issued by the Financial Conduct Authority (FCA) (the regulator) in August last year, confirming that the firms were providing investment advice to consumers, without the relevant regulatory permissions.

In a Notice issued on 12 May 2022, the FSCS has said, as follows:

We’re aware that consumers may have invested substantial funds in bonds or loan notes issued by Cavendish or through its former appointed representative, Cottesmore Associates Ltd (“Cottesmore”).

In general, a business does not have to be regulated by the FCA to raise funds by issuing shares or debt securities (such as bonds or loan notes).However, any regulated activity carried out by a regulated firm in relation to bonds may give rise to a claim that FSCS can consider.

The Financial Mis-Selling Team has a wealth of experience in navigating the FSCS process and have successfully recovered millions of pounds in compensation for hundreds of clients. We have in depth knowledge of the, sometimes complex, rules and regulations that apply to FSCS claims and can help our clients avoid potential pitfalls.

If you invested in bonds or loan notes, issued by Cavendish Incorporated and would like a free, no-obligation chat about your options, then contact the Financial Mis-Selling Team by using the phone icon at the top of this page or by using the button below to find out how we can help you.

Author bio

Neil is head of the firm’s group actions and financial mis-selling teams, specialising in handling claims for financial mis-selling relating to energy contracts, pensions, investments and timeshares.

Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.

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