The FCA says it suspects Grosvenor Associates Ltd may be part of a 'network' of credit brokers offering investments to consumers.

Grosvenor Associates has also had its permissions removed by the FCA.

In the past few months the FCA has published consumer warnings against a number of firms that may have been offering unprotected investments to customers. The firms include Cavendish Incorporated Ltd, Sentor Solutions Commercial Ltd, Marvell Enterprises Ltd and Grosvenor Associates Ltd.  All of these firms were only authorised by the FCA to conduct credit broking activities.  

Grosvenor is no longer authorised to carry out any regulated activities and the FCA has warned that any investments with Grosvenor may not be protected.

The FCA said: “We believe that there is a significant risk that Grosvenor may have offered, or been intending to offer, investments to customers which were not protected.”

Grosvenor has never been permitted by the FCA to provide regulated investment services and any investments offered by Grosvenor could pose “significant risks” to consumers due to the potential lack of regulatory protection, the FCA warned.

Grosvenor Associates Ltd is believed to be connected to Marvell Enterprises Ltd which was also recently subject to an FCA consumer warning.

The FCA said that Marvell appeared to have been carrying out investment activities for which it did not have permission and consumers may have invested “substantial sums” in bonds or loan notes issued by Marvell. 

Consumers may have been misled about the scope of Marvell’s permissions and the protection afforded to their investments, the regulator said. Due to the connection between the two companies the watchdog is concerned that Grosvenor may also have been offering investments to customers.

In its warning notice the FCA said: “We believe these firms may be part of a network of credit brokers that are offering investments to consumers which may not be protected. Customers are strongly encouraged to see the information available on our website before making any payments in relation to investments. Customers are also advised when considering an investment to check both that they are dealing with a firm that is authorised and that the firm holds investment permissions."

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 investment services provided by firms regarding these investments are likely to be regulated and subject to FCA rules.   

Grosvenor was previously authorised but the FCA said the firm did not disclose Marvell’s involvement. FCA staff have attempted to engage with Grosvenor to find out more about the connection to Marvell but says the firm has not responded.