FCA working “full-time” on Wellesley investigation
The Financial Conduct Authority (FCA) is working “full-time” on an investigation into the wind down of former mini bond provider Wellesley.
The City regulator said that the Wellesley investigation is a “very important priority”, after receiving a number of complaints from investors, led by the Wellesley Investor Action Group (WIAG).
During the FCA’s recent annual general meeting, Neil Taylor, chair of the WIAG, asked the FCA’s executive director of oversight and enforcement, Mark Steward, for an estimated timeframe for the completion of the investigation into Wellesley Group.
Read more: FCA cracks down on misleading financial promotions
Steward responded, saying that the Wellesley investigation is a “very important priority” for the enforcement team and teams are working full-time on the case.
“We’re very conscious of the losses that investors have suffered,” Steward added. “We are currently in the process of preparing a survey of investors to gauge information that we need in that particular investigation, which is about to be made public.
“We need to get the co-operation and assistance of as many investors in Wellesley as possible to enable us to take that investigation forward. So, that’s something that’s about to happen very soon. Obviously our investigation follows the evidence and it’s difficult to give a firm public commitment as to when that investigation will finish. But we’re working extremely hard and obviously trying to finish it as quickly as we possibly can.”
In September 2020, Wellesley held a creditor vote on entering into a company voluntary arrangement (CVA). However, investors claim that they were not given enough information ahead of the vote, and have challenged the company’s decision to opt for a CVA.
Read more: London Capital & Finance compensation scheme comes to a close