The UK Financial Conduct Authority (FCA) today issued a consumer warning regarding Marvell Enterprises Ltd.

The FCA explains that it has removed Marvell Enterprises Ltd’s permissions. The firm is therefore no longer authorised to carry out any regulated activities. The regulatory move reflects findings that Marvell may have been offering investments which were not protected.

The regulator is aware that consumers may have invested substantial funds in bonds or loan notes issued by Marvell.

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 FCA rules.

It appears Marvell has carried out investment-related activities with consumers. Marvell has never been permitted by the FCA to provide regulated investment services.

Marvell’s actions may pose significant risks to consumers due to the potential lack of regulatory protection that would otherwise be afforded to them. Consumers may have been misled about the scope of Marvell’s permissions and the protection afforded to their investments. It is for these reasons that the FCA has removed Marvell’s permissions.

It is important to remember that engaging with an authorised firm does not guarantee access to the  Financial Services Compensation Scheme  (FSCS) or the Financial Ombudsman Service if things go wrong. The FSCS cannot accept claims that are for poor investment performance.

If you are approached to make further payments in order to release an initial investment, you should seek independent advice before making a payment.