The High Court has wound up a scam property fund which took £880,000 from investors and promised returns of up to 51 per cent a year.
The FCA says the fund was wound up earlier this month at its request and a liquidator appointed to investigate Hermay’s activities.
The regulator says the firm had been accepting deposits from consumers without its authorisation.
The FCA says it suspects the firm has operated a scam property fund claiming to offer guaranteed returns of up to 51.5 per cent after a one-year investment.
Money Marketing understands the firm took in £880,000 from 25 investors.
The FCA says: “The liquidator will contact affected investors to confirm if any money can be returned to them once this investigation is complete.
“Our experience with this type of scheme is that consumers only receive back a small fraction of what they invested.
“Unfortunately, these consumers will not have access to the Financial Services Compensation Scheme if they suffer losses as Hermay is not an FCA-authorised firm.”