We have removed permissions from Falcon Financial Solutions Ltd and Thestral Financial Services Ltd. They are no longer permitted to carry out any regulated activities. Any investments with Falcon or Thestral may not be protected, and you could lose all your money if you invest with them. We explain what this means for customers.
Falcon and Thestral’s connections with Cavendish Incorporated Ltd
Falcon and Thestral are controlled by the same individual, Mr Bhupinder Rehal. Falcon is connected with Cavendish Incorporated Ltd[1], which we recently issued a consumer warning about. Cavendish appeared to have been carrying out investment activities without permission and consumers may have invested substantial sums in bonds or loan notes issued by Cavendish. Consumers may have been misled about the scope of Cavendish’s permissions and the protection afforded to their investments.
Due to this connection, we are concerned that Falcon and Thestral may also be offering investments to customers. Customers that invest with Falcon and Thestral could lose all their money.
We believe these firms may be part of a network of credit brokers/payment services firms that are offering investments to consumers which may not be protected.
Customers are strongly encouraged to see the information available on our website before making any payments in relation to investments.
Customers are also advised when considering an investment to check they are dealing with a firm that is authorised and holds investment permissions.
Investments with Falcon or Thestral
In general, a business does not have to be regulated by the FCA to raise funds by issuing shares or debt securities (such as bonds or loan notes). However, any investment services provided by firms regarding these investments are likely to be regulated, and subject to our rules.
Neither Falcon nor Thestral has ever been permitted by the FCA to provide regulated investment services. Any investments offered by either firm could pose significant risks to consumers due to the potential lack of regulatory protection.
Neither firm disclosed any connection to Cavendish when they applied to the FCA. We have attempted to engage with both firms to understand their connection to Cavendish and other firms, but they have not responded. We believe there is a significant risk that they may have offered, or been intending to offer, investments to customers which were not protected.
Are investments with Falcon or Thestral FSCS protected?
It is important to remember that engaging with an authorised firm does not guarantee access to the Financial Services Compensation Scheme[2] (FSCS) or the Financial Ombudsman Service[3] if things go wrong. Whether you can access these services may also depend on whether you have received any regulated services (such as investment advice) in connection with your investment.
The FSCS cannot accept claims that are for poor investment performance.
You can contact the Financial Ombudsman Service or FSCS[4] to see if your investments are protected, and whether you may have a claim if things go wrong.
If you are approached to make further payments in order to release an initial investment, you should seek independent advice before making a payment.
Are there other authorised firms that may be offering unprotected investments to customers?
In the past few months we have published consumer warnings against a number of firms that may have been offering unprotected investments to customers:
• Cavendish Incorporated Ltd [1]
• Sentor Solutions Commercial Ltd[5]
• Marvell Enterprises Ltd[6]
• Grosvenor Associates Ltd[7] and
• Renaissance Advisory Ltd[8]
These firms were only authorised by the FCA to conduct credit broking activities. Thestral is not authorised by the FCA, but was registered as a Small Payments Institution.
We believe that these firms, and the investments they may have been offering, may be connected. We encourage customers to be extra vigilant when approached by an authorised credit broking firm offering investments.
What about unauthorised firms offering investments?
Almost all firms offering financial services in the UK must be authorised and registered by us. Check our Financial Services Register[9] to see if a firm or individual is authorised or registered with us. And whether the permissions it holds for it’s ‘activities and services’, cover the service it is offering.
Always access the Register from our website, rather than through links in emails or on the website of a firm offering you an investment.
Use the FCA Warning List to check the risks of a potential investment. You can also search to see if the firm is known to be operating without our authorisation.
Not all investments are regulated by us (eg. wine) – find out more about unregulated investment products.
Where can I find out more information about investing?
Before making any payments in relation to investments, we encourage consumers to see the information on our website, including our ScamSmart pages. In particular, customers should see our information on recovery room scams.
UK consumers are being increasingly targeted by recovery room scams. This is where fraudsters approach investors who have been scammed or had failed investments, offering to help them get their money back for an upfront fee.
Also see our published information for consumers considering investing in products offering high rates of return[10].