The FCA confirmed that Vector Wealth Ltd filed an application to the High Court of Justice to place the place the financial firm into administration.
James Alexander Snowdon and Michael Colin John Sanders (from MHA MacIntyre Hudson LLP) were appointed as the Joint Administrators of Vector Wealth Ltd.
Vector Wealth Ltd was authorized by the FCA. The firm issued mini-bonds to investors, titled ‘Absolute Return Forex Bond.’ The mini-bond was marketed to high net worth and professional investors. ‘The proceeds of the mini-bond would be used to generate returns for investors through trading foreign exchange.’
Vector Wealth issuance of the mini-bonds was unregulated.
The UK regulator estimates that 40 clients have invested in the forex mini-bonds (valued around GBP 4 million). On 16 February 2022 the FCA placed several restrictions on the company.
‘With immediate effect, the Firm must cease all regulated activities for which it has Part 4A permission, without the prior written consent of the Authority.
‘With immediate effect, the Firm must cease all unregulated activities relating to unlisted bonds without the prior written consent of the Authority and must remove the financial promotions for unlisted bonds from the Firm’s websites including but not limited to www.vectorwealth.co.uk.
‘The Firm must not, without the prior written consent of the Authority, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets, and any funds it holds for, or to the order of, its customers (whether in the United Kingdom or elsewhere).’
source: FCA
Compensation
The Financial Services Compensation Scheme (FSCS) compensates clients with financial services companies collapse. At the time of this writing it is unlikely for the FSCS to compensate clients due to the company’s inability to repay the mini-bonds.
Issuing mini-bonds is not regulated as noted earlier. For an queries the FSCS and FCA may be contacted.
The FCA confirmed that Vector Wealth Ltd filed an application to the High Court of Justice to place the place the financial firm into administration.
James Alexander Snowdon and Michael Colin John Sanders (from MHA MacIntyre Hudson LLP) were appointed as the Joint Administrators of Vector Wealth Ltd.
Vector Wealth Ltd was authorized by the FCA. The firm issued mini-bonds to investors, titled ‘Absolute Return Forex Bond.’ The mini-bond was marketed to high net worth and professional investors. ‘The proceeds of the mini-bond would be used to generate returns for investors through trading foreign exchange.’
Vector Wealth issuance of the mini-bonds was unregulated.
The UK regulator estimates that 40 clients have invested in the forex mini-bonds (valued around GBP 4 million). On 16 February 2022 the FCA placed several restrictions on the company.
‘With immediate effect, the Firm must cease all regulated activities for which it has Part 4A permission, without the prior written consent of the Authority.
‘With immediate effect, the Firm must cease all unregulated activities relating to unlisted bonds without the prior written consent of the Authority and must remove the financial promotions for unlisted bonds from the Firm’s websites including but not limited to www.vectorwealth.co.uk.
‘The Firm must not, without the prior written consent of the Authority, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets, and any funds it holds for, or to the order of, its customers (whether in the United Kingdom or elsewhere).’
source: FCA
Compensation
The Financial Services Compensation Scheme (FSCS) compensates clients with financial services companies collapse. At the time of this writing it is unlikely for the FSCS to compensate clients due to the company’s inability to repay the mini-bonds.
Issuing mini-bonds is not regulated as noted earlier. For an queries the FSCS and FCA may be contacted.
Source: https://www.financemagnates.com/institutional-forex/vector-wealth-ltd-enters-administration-over-its-absolute-return-forex-bond/