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 of business growth following HMRC’s new powers to claim disputed tax. It offered projected returns of up to eight times investment within four years but failed to include any risk warnings.
Compliance experts said the email did not meet the FCA’s financial promotion rules.
But another investor alert was sent after Money Marketing raised the issue, urging those interested in the scheme to request an information pack. Rebus also included the risk warning: “The content of the Rebus EIS promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000.
“Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.”
Philip J Milton & Company managing director Philip Milton says: “Rebus holds itself out as a consumer champion so it should be whiter than white in its own promotions.”
Rebus declined to comment.