The Financial Services Compensation Scheme (FSCS) is looking for clients of two investment firms as they may be eligible for compensation.
Cavendish Incorporated and Marvell Enterprises were subject to regulatory action between 2021 and 2022 by the Financial Conduct Authority (FCA), which resulted in the two companies being forced to enter liquidation on 14 November 2022.
The UK regulator said they carried out investment activities without having the relevant authorisation to do so, including investing customer funds into bonds or loan notes.
The FSCS added that the investments were made directly through Cavendish via a series of linked firms including Cottesmore Associate and Marvell.
As a result, the lifeboat scheme is now investigating the companies and considering whether any claims against them could be valid for compensation under its rules.
“FSCS is encouraging anyone who invested money through these firms to come forward. Evidence that former customers provide could be vital for our investigations,” it said.