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Investments misselling claims management firm enters administration

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A claims management company targeting the misselling of financial products has gone into administration, the FT reports.

Rebus Group completed a crowdfunding campaign last year on Crowdcube to fund its expansion, raising a total of £816,970.

However, administrators ReSolve have now been appointed to oversee the business.

As a result, more than 100 individuals are set to lose funding contributions of between £5,000 and £135,000.

The FT reports that people who paid Rebus upfront fees to investigate misselling claims are also set to lose their money.

The company focused on investments later deemed to be tax avoidance by HMRC, taking fees on the settlement of disputes.

At the time, it said it hoped to raise capital to expand its “specialist service to cater towards supporting the victims of financial misselling”, and said that investors “could anticipate making a multiple of between 6.4 and 10.6 times their cash invested” by 2018.

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Not just any old CMC.

    A CMC that was set up by an adviser who was disqualified by FSA for selling UCIS to unsuitable clients.

  2. May all find this of interest. The author is an individual is prohibited from performing all or certain functions in relation to all or certain regulated activities by the FCA

    http://www.accountancyage.com/aa/news/2237715/clamping-down-on-misselling-after-tax-schemes-debacle

  3. Oh the irony. Investors have put between £5K and £135K into an ambulance chasing parasite and now stand to lose it.

    Who is going to help them reclaim their lost investments?

  4. Perhaps another claims management company can start generating claims based on the misleading returns offered.

  5. So its managed to spend £800k, on top of any other revenue, in less than a year?

  6. 5 charges over the company satisfied in June last year. Maybe that answers how they managed to spend £800K in a year.

  7. Readers may be interested to see how the company tried to raise funds from investors in 2015. I was sent an unsolicited invitation by their CEO, that I immediately queried the irony of, with him, and by sending to the press (shame I didn’t send to the regulator: it had all the hallmarks of a fundamentally flawed business and investment offering):

    From: michael@rebusnews.co.uk [michael@rebusnews.co.uk]
    Sent: Thursday, March 05, 2015 6:03 PM
    To: CT@TheInvestmentBridge .
    Subject: Rebus is fundraising

    Dear Chris,

    In 2009 the founders of Rebus identified the scale of potential mis-selling relating to Complex Investment Products at around £55bn and set about developing a specialist service to cater towards supporting the victims of financial mis-selling. In many cases these victims will suffer significant financial losses, possibly bankruptcy. Many are in the twilight of their careers and the prospect of replacing these losses is not high. Aside from the financial implications, these issues will impact on them personally and in some instances have led to suicide.

    Join us on our journey

    The Rebus Board has taken the exciting decision to utilise CrowdCube as the crowdfunding platform of choice in order to help secure at least £600,000 of the capital we are seeking to raise. We believe CrowdCube provides a simple, focussed and effective solution.

    Our vision is to move towards a universal service for our clients who have been mis-sold Complex Investment Products, but not everyone agrees with the role we have carved out for ourselves in the Financial Services market.

    The Rebus team have big plans and we would like your help, please visit our pitch page at http://www.crowdcube.com/rebus.

    We believe this is a fantastic opportunity for any prospective investor to consider. If our plans can be translated into success, this is a great chance to get a foothold in a business which is the market leader.

    Should you have any questions, please do not hesitate to contact me at Rebus and I’ll be happy to talk with you and, if you know of anyone else that might be interested, please do forward on my email.

    Best regards
    Michael Kamine
    ​CEO, Rebus Group

  8. My email to Rebus …

    From:
    Sent: Friday, March 06, 2015 10:01 AM
    To: michael@rebus.co.uk
    Subject: RE: Rebus is fundraising

    Hi Michael,

    Is it possible that there is any irony in you/your firm sending an unsolicited and seemingly untargeted (how have I been identified as a suitable recipient of your request that I invest?) and unregulated (I assume?) marketing letter, to invite investment in something that could, itself, be considered complex …. in order to raise funding to target legal action/compensation claims against complex investments that may have been marketed similarly?

    Can you elaborate on the breakdown of the £55bn you identified as Missold complex investments – by type? Your material seems to focus on tax avoidance schemes, but doesn’t elaborate.

    I share concerns that investors should be investing appropriately, in products designed, developed, distributed/marketed/advising upon appropriately, with total integrity.

    Regards

  9. I thought most CMC were no win, no fee.

    Presumably, this type of firm is not required to hold separate client accounts.

    As for 640+ per cent returns by 2018. How does anyone seriously swallow that rate of. Growth.

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