Manchester-based alternative investment manager MCI Global Investment Advisors Limited (FRN: 948996) has been declared in default today after 58 claims were received against the firm which went into liquidation in October.
The Financial Services Compensation Scheme has declared the firm in default after one claim, so far, was upheld.
With the firm unable to meet the cost of the claim the FSCS will now step in to pay up to £85,000 per successful claim.
The FSCS said it had received 58 claims, relating to Life Distribution, Pensions & Investment Intermediation.
MCI Global Investment Advisors Limited (MCI) was an authorised Alternative Investment Fund Manager (AIFM).
The regulated firm provided alternative investment fund management services for funds, including the Novus Black Fund UK Ltd, an unauthorised firm.
The FCA said that MCI informed it in August 2024 that it was no longer a going concern. The director of the firm took insolvency advice and determined the best course of action was to put the firm into liquidation.
The Novus Black Fund UK Ltd went into liquidation on 27 November 2024.
Novus Black Fund was managed by MCI Global Investment Advisors Limited (MCI). UK regulations require this type of fund to have a regulated fund manager – known as an authorised alternative investment fund manager (AIFM). Among other duties, the role of an AIFM is to manage the assets held by the fund and to provide risk management.
The FCA said it believes the fund experienced significant losses that have not been reported to investors. In August 2024 and September 2024, MCI agreed to a number of restrictions on the fund to make sure no trades or payments were allowed on any trading accounts held by the Novus Black Fund, to close any open investment positions held by Novus Black Fund and to notify investors of these restrictions.
Path Business Recovery Limited was appointed as liquidator of MCI in October and is writing to investors to explain what to do if they have investments in funds managed by MCI.
The FCA described MCI Global Investment Advisors Limited as a small Authorised Alternative Investment Fund Manager that provided alternative investment fund management services for funds.
It is not yet known how many investors have been affected by the failures or how much was invested.
The FCA recently wrote to Novus Black Fund investors about unreported losses.