Eight regulated firms which appear to be connected have gone into liquidation following FCA action.

At least one of the firms, Marvell Enterprises Ltd of London, was originally authorised as a credit broker but breached its permissions by offering investment products.

The FSCS, the government-backed compensation body, declared Marvell as under investigation in July. FSCS investigations are ongoing.

The FCA has previously issued consumer warnings against the eight firms which have gone into liquidation following petitions by the FCA.

The court ordered that the firms be wound up with the Official Receiver appointed as the liquidator.

The 8 firms are:

• Cavendish Incorporated Ltd 
• Cottesmore Associate Ltd
• Marvell Enterprises Ltd  
• Grosvenor Associates Ltd 
• Renaissance Advisory Ltd
• Falcon Financial Solutions Ltd
• Thestral Financial Services Ltd
• Semantic Business Services Ltd

The regulator said that the eight firms appear to have connections to each other. None have ever been permitted to provide regulated investment services but the FCA said consumers may have invested "substantial sums" with at least two of the firms, Cavendish and Marvell. 

The firms failed to respond to communications from the FCA and the FCA said it believed, “they posed a significant risk to consumers.”

The watchdog said it took action to prevent these firms from causing “further harm.” The action means that if the firms hold any assets, they can be recovered for the benefit of anyone owed money by the firms.

Marvell Enterprises Limited has already been declared in default by the Financial Services Compensation Scheme. Marvell (FRN: 942172) was registered with the Financial Conduct Authority from 16 January 2021 as a credit broker but in breach of its permissions was involved in offering products such as an ISA and a high yield bond.

The FSCS said the credit broker and property developer offered high yield bonds and ISA products as well as carrying out other regulated investment activities for which it did not have permission.