The High Court has wound up an unregulated investment introducer firm which was receiving up to 40 per cent commission from bond issuers.
Asset Backed Management Limited was put into provisional liquidation in April following an investigation by the Insolvency Service.
At a High Court ruling on 7 May the Official Receiver was appointed as liquidator.
Asset Backed Management sold investment opportunities, including corporate bonds and alternative bonds, to members of the public.
Commission deducted from customers’ investments ranged from 27.5 per cent to 40 per cent and was paid to the company by the issuers of the bonds.
The company, which investigators confirm has never been regulated by the FCA, would contact prospective customers by cold-calling them, as well as promoting business through its website www.assetbackedmanagement.com.
According to the Insolvency Service, Asset Backed Management targeted people who were not sophisticated investors, and in some cases targeted vulnerable individuals.
No books and records were provided by the company but bank statements revealed income via commission came to £260,000 leading investigators to believe it introduced between £650,000 to £940,000 of unregulated investments.
Insolvency Service chief investigator Helen Cosgrove says: “Asset Backed Management traded in willful breach of FCA regulations that exist to protect investors. Many members of the public have been impacted by their actions.
“This behaviour will not be tolerated. The Insolvency Service will investigate any reports of such conduct and petition the court to wind-up companies found to be trading to the detriment of the public interest.”