<
p>After withdrawing from talks to obtain redress for investors, the FCA has decided to investigate the former operators of Connaught Income Series 1 Fund.
The regulator is to formally examine the activities of both Capita Financial Managers Limited and Blue Gate Capital Limited after the watchdog entered negotiations with them for extended periods last year.
The fund, which backed the now collapsed bridging lender Tiuta, was suspended in March 2012 following the discovery of a shortfall. Connaught Asset Management (CAM) entered into administration in September later that year following the collapse of its Income Series 1,2 and 3 Funds.
The FCA began the process of creating a redress deal for Series 1 Fund investors in July last year.
In a statement today, the FCA said: “The FCA had been supporting negotiations with the aim of securing an agreement between the parties to address the losses for investors in the Fund. The period for the negotiations has been extended more than once as it was considered to be in the interests of investors to do so.
“Due to the level of public interest in the Fund, it was decided to make this decision public, but there will be no further comment until investigations reach a conclusion.
“The fact that a firm is under investigation does not mean that the FCA has reached any conclusions on whether any wrongdoing has occurred.”
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After withdrawing from talks to obtain redress for investors, the FCA has decided to investigate the former operators of Connaught Income Series 1 Fund.
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