The FCA has now decided to formally investigate the activities of both operators.
Connaught entered administration in September 2012 after the collapse of its Income Series 1, 2 and 3 unregulated collective investment schemes, which provided credit lines to stricken bridging lender Tuita, a firm that also went into administration in September 2012. About £118m was invested in the scheme.
The FCA had been supporting negotiations with the aim of securing an agreement between the parties to address the losses for investors in the Fund. The period for the negotiations has been extended more than once as it was considered to be in the interests of investors to do so.
The FCA stressed that a firm being under investigation does not mean that the FCA has reached any conclusions on whether any wrongdoing has occurred.
