The FCA has restricted an authorised firm, Sentor Solutions Commercial Ltd, to prevent it carrying out regulated activities without prior written consent from the regulator.

Sentor Solutions firms introduced consumers to Texmoore and Fabcourt who appear to have been promoting high-risk investments in property development. 

Neither Texmoore nor Fabcourt have ever been permitted by the FCA to provide regulated investment services. 

The FCA has previously issued consumer warnings for Texmoore Limited and Fabcourt Developments due to the “significant risks” to consumers associated with potential lack of regulatory protection in dealing with the firms.

The FCA has warned that investments in Texmoore and Fabcourt may not be covered by the Financial Services Compensation scheme even though Sentor is a regulated firm.

The watchdog says it has taken action to protect consumers.

The warnings relate to investments made in Texmoore Limited, Fabcourt Developments Limited or interactions with Sentor Solutions. Any investments in Texmoore Limited and Fabcourt Developments Limited, who Sentor Solutions undertook business for, may not be protected under FSCS compensation schemes, says the FCA.

Sentor Solutions Commercial Ltd and/or a related firm called Sentor Solutions Advisory Limited are believed to have acted as security trustees and undertook business for Texmoore and Fabcourt. 

Although Sentor Solutions Commercial is an authorised firm with credit broking permissions, and Sentor Solutions advisory was previously an appointed representative, neither of these firms have been permitted by the FCA to provide regulated investment activities.

Security trustees hold a charge over certain of the debtor’s assets for several creditors, with the purpose of distributing the assets evenly among the creditors, should the debtor fail to meet their financial obligations. Having a security trustee does not create a financial guarantee for the investors, the FCA has reminded investors. 

Being a security trustee does not require FCA Authorisation.

The FCA says it issued a warning because Sentor Solutions Commercial Ltd failed to pay due regard to the interests of its customers and treat them fairly. 

The FCA has warned consumers that engaging with an authorised firm does not necessarily guarantee access to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service if things go wrong. Access to these services can depend on whether investors have received any regulated services, such as investment advice.

The FCA added that UK investors should also be aware of ‘recovery room’ scams where fraudsters approach investors who have been scammed or had failed investments. The fraudsters offer to help recover losses for a fee but these are often scams themselves.