View more on these topics

FCA set for Connaught redress talks

The FCA is to hold talks in an attempt to reach a negotiated settlement of redress for those who invested in Connaught Income Funds.

In a statement today, the regulator says it believes a negotiated settlement to address investor losses represents the best course of action for all parties.

The FCA says: “Therefore, for a limited period, we will support the parties concerned in an attempt to reach a negotiated resolution with a view to obtaining appropriate redress for investors as soon as possible.

“We encourage the parties concerned to engage constructively with us and each other for this limited period to avoid potentially lengthy and costly alternatives to a negotiated settlement.

“This is a voluntary and confidential process, and so we will be unable to comment further on its progress until an agreement is reached or negotiations break down.”

The statement follows an appearance by FCA director of mortgages and consumer lending Linda Woodall at the All Party Parliamentary Group on Connaught Income Funds yesterday evening.

The Connaught Series 1 fund was suspended in March 2012 and interest payments were not made to investors. A review was commissioned to ascertain its true value.

In 2012, Money Marketing revealed investors faced losses of up to 50 per cent. An independent review by Duff and Phelps suggested recoveries would be between £46.5 and £53.2m of the £105.5m used to fund Tiuta.

A decision to wind down the Series 1 and £18m Series 2 fund, which was used to fund another Tiuta subsidiary called Tiuta Development Finance, was made in June 2012. A Series 3 fund, which was not linked to Tiuta loans and raised around £22m, was wound down in July 2012 due to a spike in redemptions.

CAM bought Tiuta International and Tiuta Development Finance, the Tiuta Plc subsidiaries that used the Series 1 and Series 2 funds respectively, for £1 in June 2012. In July 2012, Money Marketing revealed Tiuta International had been placed into administration by CAM.



Nucleus board member Bruce Wilson steps down

Nucleus director Bruce Wilson has stepped down from the board. Wilson has been a director since the platform launched and has been non-executive director since 2011. He is also a non-executive director at Helm Godfrey, a shareholder in the Edinburgh-based platform.  Nucleus says a replacement will be confirmed “in due course”. Nucleus chief executive David […]


Rebus sends risk warning to EIS investors after compliance concerns

Claims firm Rebus has sent a risk warning to potential investors in its enterprise investment scheme after compliance experts raised concerns that a promotional email breached FCA rules. Last week, Money Marketing reported on an “investor alert” email sent by Rebus. This said the firm was looking to raise £2m through an EIS in anticipation […]

Andrew Fay

Close Brothers wealth management heads step down

Cavanagh co-founders Andy Fay and Simon Redgrove have left Close Brothers’ wealth management arm. Redgrove and Fay founded national IFA firm Cavanagh in 1996 and joined Close Brothers when it acquired the advice business in 2011. Cavanagh was then rebranded as Close Brothers’ own wealth advice service and has around 130 advisers. The deal, worth […]


Mark Barnett: UK equity market struggles to find direction

To date, 2014 has seen the UK equity market struggling to find a convincing direction. Concerns over the situation in Ukraine and, more recently, Iraq and the outlook for economic growth in China have outweighed positive news on UK employment and inflation.  Partly reflecting the impact of sterling appreciation against the US dollar, aggregate consensus earnings […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Ah more . . . . ” NEGOTIATED SETTLEMENTS ” from the Reg Ulator . . .and Con Naught ? These negotiated settlements appear to be systemic . . . . . . and paid for by the 20,000 advisers now left . . . . .

  2. As a significant investor in Connaught 3 now living abroad I find the lack of information alarming. At best I now have to make do with an annual update from the Liquidator.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm