FCA issues supervisory notice to Grosvenor Associates
The UK Financial Conduct Authority (FCA) has issued First Supervisory Notice to Grosvenor Associates.
Pursuant to sections 55J(1)(a) and (c) of the Act, the FCA has decided to vary with immediate effect the Part 4A permission granted to Grosvenor. The effect of the Variation is that Grosvenor no longer has permission to conduct any regulated activities.
The regulator has concluded that it is appropriate to exercise its power to vary Grosvenor’s permission because it is failing, or is likely to fail, to satisfy the Suitability Threshold Condition and to advance the FCA’s consumer protection objectives.
The Authority has identified serious concerns relating to Grosvenor in that its conduct appears to demonstrate that it is not a fit and proper person and poses a significant risk of harm to consumers.
Specifically, Grosvenor has links to Marvell, to whom the Authority issued a First Supervisory Notice in November 2021 for carrying out investment activities outside the scope of its permission and misleading investors about the extent of its regulated status.
Information filed on Companies House records that Marvell holds a significant interest in Grosvenor in the form of a 39.69% shareholding. The websites for Grosvenor and Marvell also carry identical formatting, images and wording. There are serious concerns that Grosvenor may be attempting to engage in similar activities previously undertaken by Marvell.
In addition, Grosvenor also appears to be, or has been, connected to firms that the Authority has warned about for undertaking unauthorised business, including Texmoore, Fabcourt and the website ‘regulated-fixed- income.co.uk’.
Furthermore, Grosvenor’s business model as described on its website is materially different to that described in its authorisation application. Grosvenor’s website does not indicate it is involved in any activity that would require it to be authorised as a credit broker, but it makes numerous references to investment activity for which it does not hold permission.
It appears that Grosvenor has made misleading statements about its intended business when applying for authorisation. There are serious concerns that Grosvenor may be seeking to misuse its regulated status as a credit broker to take advantage of consumers by undertaking investment activities without relevant permissions as indicated from information on its website.
Grosvenor has failed to respond to three information requirements issued under section 165 of the Act requiring clarity on its business model, current activities and links to Marvell. The Authority has also been unable to reach Grosvenor through telephone calls.