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.