Last week (August 6), Northern Provident Investments (NPI) proposed entering creditors’ voluntary liquidation and appointing partners from FRP Advisory Trading Limited (FRP) as its liquidators.
The FCA said it believes there is a high risk of scammers trying to take advantage of the investment firm’s customers.
Northern Provident Investments operated a platform where retail customers could buy debentures and shares, which may be held in an innovative finance individual savings account or stocks and shares individual savings account. Some of these investments were mini-bonds.
The FCA said: “Given the large number of mini bonds that NPI distributed via their platform, we believe there is a high risk of scammers trying to take advantage of NPI’s liquidation to try to defraud customers.
“We are notifying NPI customers of its proposed liquidation and warning them of the danger of scammers contacting them. As part of this we are setting out the steps customers should take if contacted by people claiming to be from NPI or FRP.”
Northern Provident Investments had approved financial promotions for issuers of mini-bonds and was linked to the Blackmore Bond scandal.
Blackmore Bond raised millions of pounds from investors to fund property developments between 2016 and 2018, but the…