The Financial Conduct Authority (FCA) has told Capita Financial Managers (CFM) it must pay up to £66m to investors who suffered loss as a result of investing in the Guaranteed Low Risk Income Fund, Series 1 (or as it became later known, the Connaught Income Fund), which is now in liquidation.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA said:
“Consumers are entitled to expect that authorised firms will carry out their responsibilities under our Principles for Businesses with care and diligence. These responsibilities are paramount and in this instance CFM failed badly.
“The aim of the payment announced today is to return the amount originally invested, placing investors as closely as possible back into the position they would have been in if they had never invested in the fund.
The fund was an unregulated collective investment scheme (UCIS) which began operation in March 2008 providing short term bridging finance to commercial operators in the UK property market.
CFM was the operator of the fund until it resigned on 25 September 2009. The fund ultimately went into liquidation on 3 December 2012.