The Financial Services Compensation Scheme (FSCS) has announced that it will consider claims from investors with bonds from Cavendish Incorporated Ltd (Cavendish), Cottesmore Associates Ltd (Cottesmore) and Marvell Enterprises Limited (Marvell).
Where Cavendish, Cottesmore and Marvell came unstuck was by offering financial advice to investors. However, none of the three were ever authorised by the FCA to give financial advice. In May this year, some customers complained that they had received unsuitable financial advice and lost money as a result.
In August this year, the FCA issued a warning about Cavendish, saying that they could have been selling investments to customers without permission. The FCA intervened and stopped them and the wider group of credit brokers from carrying out any regulated activities, without the FCA’s permission. By September, a petition had been raised in the High Court to wind up the Cavendish business, due to insolvency.
The Financial Services Compensation Scheme (FSCS) is a Government backed body set up to help and compensate victims of failed financial firms. The FSCS has now asked anyone who believes that they may have a claim in relation to Cavendish, Cottesmore or Marvell to come forward. The FSCS has said that it will investigate such cases to see if they are suitable for compensation.
In a recent press release the FSCS stated:
“The FCA has taken action against these firms… as they are believed to be a risk to consumers. They are aware that consumers invested funds into ISAs, convertible bonds and loan notes issued by Cavendish.
These investments were made directly through Cavendish Incorporated, through 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.
As a result, FSCS is investigating these firms and considering whether valid claims for compensation exist under its rules.”
Making a claim to the FSCS can be time-consuming and many consumers choose to instruct a claims solicitor. Having dealt with FSCS claims on behalf of our clients for many years, we ensure that claims are processed as quickly as possible using our up-to-date digital case management systems.
We understand the complex appeals process, so if a claim is rejected, we can advise on what to do next giving you the best chances of success. TLW Solicitors’ experienced team understand the financial jargon that claimants face and can explain this in a straightforward and easy-to-understand way.
“Investing with an unregulated firm leaves you at risk if things go wrong, as you would not ordinarily be able to access help through the Financial Ombudsman Service or the FSCS. In this case, Cottesmore and the credit brokers appear to have given financial advice, which is a regulated activity, despite never being regulated to do so.
This means that the FSCS has agreed to look at investors’ claims. This will be a great relief to those who have lost significant sums of their hard- earned money, as it means they have the chance to hopefully recover compensation.”
If you are concerned about an investment with Cavendish, Cottesmore, Marvell or any of the other brokers listed above, please get in touch.
It will cost you nothing to make an enquiry and once our team has reviewed your potential case and if we feel it suitable, we will enter into a ‘no-win, no-fee’ agreement. This means that, if the claim is unsuccessful, we will not charge for the time we have spent on the case.
Call us on 0800 169 5925, email firstname.lastname@example.org or complete one of the forms below.
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“The FCA has taken action against these firms… as they are believed to be a risk to consumers. They are aware that consumers invested funds into ISAs, convertible bonds and loan notes issued by Cavendish.”