blue gate capital

Blue Gate Capital Limited enters liquidation

Blue Gate Capital Limited has appointed insolvency practitioners to conduct the liquidation of the firm.

In December 2020, the FCA publicly censured Blue Gate and ordered it to pay £203,007 in restitution to investors who lost money investing in the Connaught Income Fund, Series 1.

The Connaught Income Fund, Series 1 was an unregulated collective investment scheme (UCIS) which commenced operation in March 2008, providing short-term bridging finance to commercial operators in the UK property market. 

Blue Gate took over as operator of the fund from Capita Financial Managers Limited (CFM) on 25th September 2009 and remained as operator until the fund’s compulsory liquidation on 3rd December 2012.

The FCA had found, and Blue Gate agreed, that it breached Principle 2 of the FCA’s Principles for Businesses, because it failed to conduct adequate due diligence on the fund prior to taking it on, failed to investigate potentially serious issues with the fund of which it was aware and failed throughout its tenure as operator to establish that the fund was operating as it was supposed to.

These failings would have resulted in the imposition of a penalty of £10m, which would have been imposed if Blue Gate had not established it was in serious financial hardship. 

Blue Gate had until 8th January 2021 to pay the £203,007 compensation to the regulator for onward distribution to investors. 

The watchdog subsequently issued a statutory demand for payment.

It has been confirmed that Blue Gate’s shareholders have taken the decision to place the business into insolvent liquidation via a creditors voluntary liquidation.

Jason Mark Elliott and Craig Johns of Cowgill Holloway Business Recovery LLP were appointed joint liquidators on 1st March 2021. 

The FCA stated it would make a claim in the liquidation, as a creditor, for the restitution amount.

Any creditor of Blue Gate should contact the liquidators via [email protected] or 0161 672 5763.

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