The FCA has barred another credit broker suspected of offering investments as concern grows about a network of credit brokers misusing their permissions.

The FCA said it had “serious concerns” about Renaissance Advisory Ltd of Ilford, Essex.

The FCA has stripped Renaissance of its Part 4A permission to conduct regulated activities and removed the firm’s second credit broking licence.

Renaissance is being linked to similar activities undertaken by Marvell Enterprise Ltd, which was also recently subject to an FCA warning. 

Marvell, which appeared to have a controlling stake in Renaissance, has also had its regulatory permissions removed.

The FCA says consumers may have invested “substantial funds” in bonds or loan notes issued by Marvell and it appeared that Marvell carried out investment-related activities with consumers despite not being authorised to do so. 

The regulator believes Marvell may have misused its regulated status as a credit broker to “take advantage” of consumers. 

The FCA said of Marvell: “It appeared to have successfully persuaded some consumers to invest substantial sums with it while not having the required permissions to engage in investment activities, and by making misleading statements designed to give false comfort to consumers about the level of regulatory protection their investments would receive.”

Any investments would be unlikely to be protected by the Financial Services Compensation Scheme.

Marvell’s website says the firm specialises in property development and investment in social housing, student accommodation and commercial property.

In a First Supervisory Notice issued by the regulator today on Renaissance, the firm was linked to Marvell and a number of other credit broking firms suspected of offering investments to clients. 

The firms include Grosvenor Associates Ltd, Cavendish Incorporated Ltd, Sentor Solutions Commercial Ltd and Marvell Enterprises Ltd.  All of these firms were only authorised by the FCA to conduct credit broking. 

The regulator said it had serious concerns about Renaissance Advisory because its conduct appears to demonstrate that it is “not fit and proper” and it poses a significant risk of harm to consumers.

Companies House records show that Marvell is a significant controller in Renaissance. Its shareholding appears to have been acquired before, but filed after, Renaissance was authorised. Renaissance did not disclose this information to the authority during or after its authorisation, the FCA said. The sequence of events suggests that Renaissance misled the authority about its controllers during the authorisation process, the FCA said.

Renaissance also appears to be connected to Grosvenor, a firm the FCA issued a First Supervisory Notice about on 30 November due to its apparent links to firms that the authority has warned about for engaging in unauthorised business and for providing misleading information about its controllers and intended business at authorisation. 

As with Renaissance, Marvell holds a significant interest in Grosvenor through a shareholding which, according to Companies House records, was acquired, but filed after, Grosvenor was authorised. 

During the authorisation process, Renaissance and Grosvenor also submitted substantially identical information in response to the authority’s request for more information about the nature of their businesses. 

The FCA says it is concerned that Renaissance may be seeking to engage in similar activities previously undertaken by Marvell through the misuse of its regulated status as a credit broker.

Renaissance has failed to respond to three information requirements from the FCA 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 Renaissance through calls to its director.