The Financial Conduct Authority (FCA) has warned consumers against Falcon Financial Solutions Ltd and Thestral Financial Services Ltd.
The UK financial regulator has removed permissions for the two companies to carry out any regulated activities.
The warning was issued because Falcon and Thestral are linked to Cavendish Incorporated Ltd. Both companies are controlled by the same individual, Bhupinder Rehal.
The FCA stated:
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.
The FCA expressed concerns that Falcon and Thestral may also be offering investments and customers that invest with them could lose 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.
Additionally, the regulator noted that neither Falcon nor Thestral have permission to provide regulated investment services by the FCA. The firms also did not disclose any connection to Cavendish when they applied to the FCA.
The Authority also highlighted that they have attempted to speak to the firms to understand their connection to Cavendish and other firms, but they have not received a response.
New FCA rules
The FCA recently strengthened the rules on promoting high-risk financial products, including crypto. Additionally, the UK government announced that it will bring crypto ads under the FCA’s remit. When that happens, the financial markets regulator intends to categorise qualifying cryptoassets as ‘Restricted Mass Market Investments’.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.