MPs have backed the Complaints Commissioner over concerns relating to the failure of the Connaught Series 1 Income fund and consider the findings raise “serious questions” of regulatory failure.
Ten MPs have signed an early day motion that was filed on 7 December by primary sponsor Kirsten Oswald of the Scottish National Party.
The Complaints Commissioner has received two complaints from adviser Adam Nettleship and former bridging lender Tiuta chief executive George Patellis about the role of the regulator ahead of the Connaught fund’s suspension.
Following the commissioner’s reports the FCA said it is appointing a third party to review its regulation of firms connected with the Connaught Income Series 1 fund.
The motion says: “That this House welcomes the findings of the Complaints Commissioner following complaints lodged by George Patellis and Adam Nettleship regarding the loss of over £100m by investors in the Connaught Income Series 1 Fund…
“[And] regrets the refusal of the FCA to accept the Commissioner’s recommendation that Mr Patellis receive a public apology for the lack of care over his treatment as a whistle-blower and the defensive and insensitive manner in which it has defended its failure to refer Mr Patellis’ evidence to the police or to advise him appropriately on his ability to do so”
It adds: “The house considers that the Commissioner’s findings raise serious questions of regulatory failure.”
The motion also calls on Capita, which was the original operator of the fund, and its successor Blue Gate to acknowledge their responsibilities and offer investors “realistic compensation.”