The FCA has imposed a number of restrictions on a car investment scheme provider and ordered it to halt regulated activities because of concern about its finances.

The watchdog placed the restrictions on motor finance provider Raedex Consortium Limited (Raedex) on 19 February.

Raedex is part of an investment scheme offering consumers the chance to invest in car leases through Buy 2 Let Cars Ltd and Rent 2 Own Cars Ltd. The investment scheme is conducted through Buy 2 Let Cars Ltd. which is not FCA authorised. 

The FCA says the requirements will stop Raedex from entering into any new car leases, however all existing leases can remain in place.

If any consumers who have invested in Buy 2 Let Cars Ltd or customers of Raedex have queries they should contact the Buy 2 Let Cars Ltd. on 020 8289 6667 or Raedex directly on 020 3823 1010.   

Raedex is not permitted to enter into any new lease agreements at present and the FCA has set no time limit for the restrictions.

The FCA has reminded investors that Buy 2 Let Cars Ltd. is not regulated by the FCA and investors should be aware that Raedex is not permitted to arrange new leases with customers. It says investors looking to invest in hire cars should not make investments through Buy 2 Let Cars Ltd as the monies cannot be invested in cars which are then leased out.

The FCA says that because Buy 2 Let Cars Ltd is not FCA authorised no claims can be made to the FSCS or the Financial Ombudsman Scheme. It says any complaints should be raised with Buy 2 Let Cars Ltd.

The investments themselves are loan agreements and not liquid investment in marketable securities, the FCA added. For this reason it is “unlikely” that investors will be able to exit.