ADVERTISEMENT
ADVERTISEMENT
FCA Orders Connaught Fund Operator To Repay Investors
Law360, London (December 18, 2020, 12:37 PM GMT) The Financial Conduct Authority said Friday that it has ordered Blue Gate Capital to repay £203,000 ($275,000) to investors who lost money when the unregulated Connaught Income Fund collapsed, as the regulator publicly censured the operator of the fund.
The FCA said it found that Blue Gate Capital Ltd., which is authorized by the City watchdog, had breached its rules by failing to carry out proper checks on the Connaught Income Fund Series 1 before taking over as its operator in September 2009.
The failings would have cost the operator £10 million, but the FCA acknowledged that Blue Gate is in.
FCA orders Blue Gate pay £203k to Connaught investors
Lost money through a UCIS
Blue Gate became fund operator on 25 September 2009, taking over from Capita Financial Managers (CFM), and remained operator until the fund went into liquidation on 3 December 2012.
The Financial Conduct Authority (FCA) has ordered Blue Gate Capital Limited to pay £203,007 to savers who lost money investing in the Connaught Income Fund.
The fund, which was formerly known as the Guaranteed Low Risk Income Fund Series 1, was an unregulated collective investment scheme (UCIS) that opened in March 2008, providing short-term bridging finance.
Sign In
To read this story please register