London-based investment firm Equity for Growth (Securities) Limited (FRN 475953) has gone into liquidation this week following an FCA petition to wind up the company.
Equity for Growth (Securities) Limited (EFG) has been linked to the failed mini-bond provider Blackmore Bond which collapsed in 2020 owing £46m to investors.
The Financial Services Compensation Scheme yesterday (26 March) declared the firm in default, opening the door to ex-clients to claim up to £85,000 per claim.
The High Court ordered the winding up of EFG yesterday following the FCA petition to place the firm in liquidation.
EFG was a corporate finance firm and acted as principal for several appointed representative firms between 2015 and 2020, including Amyma Ltd and Osborne Baldwin Ltd, which traded as Hunter Jones.
Watford-based Amyma Ltd was connected to failed mini-bond provider Blackmore Bond. It marketed high risk "mini-bonds" which promised returns from 6.5% to 10% issued by Blackmore Bond which went into administration in April 2020, with investors losing most of their £46 million investment.
The FCA said it had received “a large number of complaints” from investors about EFG, which were referred to the Financial Ombudsman Service. These included claims about mini bonds issued by unauthorised companies and promoted by EFG’s appointed representatives, Amyma Ltd and Hunter Jones.
In a statement the FCA said: “We considered that EFG was insolvent and did not have appropriate resources in relation to the Financial Ombudsman claims. This meant it could not pay any compensation consumers may have been owed.
“We therefore filed a petition on 18 October 2024 for EFG to be wound up so that claims could be assessed by the Financial Services Compensation Scheme (FSCS). The Court has now made a winding-up order. On the same date as the petition, we placed restrictions on the firm to prevent it from conducting regulated activities.”
Mini-bonds were marketed by a number of companies and promised high fixed returns to investors based on property-backed investments however many of the providers have failed.
EFG was based in central London, near Kings Cross, and had been authorised since 2008 with at least five appointed rep firms connected to the business, according to the FCA register.