The UK’s financial watchdog has imposed requirements on a company called Cavendish Incorporated Ltd.
This means it is not permitted to carry out regulated activities without prior written consent from the Financial Conduct Authority.
It has also warned consumers that their investments in Cavendish or its former appointed representative, Cottesmore Associates Ltd, may not be protected.
According to Companies House, Cavendish is engaged in engineering-related scientific and technical consulting activities.
Further details about the company are not currently available, as its website failed to load.
Not permitted
In a statement dated 3 August, the FCA said: “We are aware that consumers may have invested substantial funds in bonds or loan notes issued by Cavendish or through its former appointed representative, Cottesmore Associates Limited.”
Businesses do not, in general, have to be regulated by the FCA to raise funds by issuing shares or debt securities.
But “any investment services provided by firms regarding these investments are likely to be regulated, and subject to our rules”, the FCA added.
“It appears Cavendish and Cottesmore have carried out investment-related activities with consumers.”
Neither firm has ever been permitted by the FCA to provide regulated investment services, the watchdog stated.
Potential harm
The FCA said that the actions of the firms “may pose significant risks to consumers due to the potential lack of regulatory protection that would otherwise be afforded to them”.
“It is for this reason that we have imposed requirements on Cavendish.”
It added that consumers can contact the Financial Services Compensation Scheme or Financial Ombudsman Service to see if their investments are protected.
The watchdog cautioned that any consumer who is asked to make further payments to release an initial investment seek independent advice before making any such payment.
