The UK Financial Conduct Authority (FCA) has issued a warning against Thestral Financial Services Ltd and Falcon Financial Solutions Ltd. According to the watchdog, both firms have been barred from carrying out regulated activities. As a result, the regulator has warned that any investment on these platforms may not be backed or protected.

Both Firms Are Controlled By One Person

Thestral and Falcon share the same management and are controlled by the same person, Mr. Bhupinder Rehal. Falcon also has a connection with Cavendish Incorporated Ltd, a company the FCA blacklisted recently.

According to the regulator, Cavendish has been operating investment activities without the required approval from the FCA. Also, Cavendish may have received investment funds from consumers following the issuance of loan notes and bonds by the company. Cavendish may have misled the investors and provided false information about the scope of the company’s permissions as well as protection given for the investment.

The FCA Warns Investors Against Both Companies

Additionally, the FCA is concerned that both Thestral and Falcon may have offered investments to customers. These investors are at risk of losing all their money since the platforms are not regulated and not permitted to offer such services in the U.K.

The watchdog also believes that the companies may not be working alone. They may be part of a global network of payment services/credit brokers that offer unprotected investments to consumers.

Neither Thestral nor Falcon has ever been granted permission by the FCA to operate as an investment service in the country. This means that any investment the companies offer may be highly risky to the investors since they are not protected by the law in case something goes wrong.

Also, neither firm has disclosed any link to Cavendish when they were applying to the FCA. The watchdog noted that it has made steps to engage and communicate with both companies to find out their connection with Cavendish and other firms.

However, all its efforts have been fruitless as the firms have refused to respond. Since investigation revealed a connection, the FCA says it had no choice than to ban them from offering regulated investment services in the country.