Herts-based MCI Global Investment Advisors Limited has been put under investigation by the Financial Services Compensation Scheme after entering liquidation.
According to the FCA, the firm is a small authorised fund manager which provided alternative investment fund management services for funds, including Novus Black Fund UK Ltd which is an unauthorised firm.
The City watchdog said it had written to Novus Black Fund investors about unreported losses.
It confirmed investors would shortly be contacted by the liquidator to explain further what this means.
Gareth Howarth of Path Business Recovery Limited was appointed as liquidator in October 2024, as the firm undergoes creditors voluntary liquidation.
Investors have been urged to contact the liquidator if they have any concerns about their investment in the fund.
The firm has applied to cancel its authorisation with the FCA and the FSCS has placed the firm under investigation.
The lifeboat scheme has said people can now begin to make a claim if they believe they have a potential compensation claim against the firm.
However, the FSCS has said it first needs to establish whether there are any claims that are eligible under its rules, which may take some time.
It also said it anticipated this to be a “complex investigation” and would work closely with the liquidators.
alina.khan@ft.com
