‘Investors can face ruin under the watch of authorised firms’
said: “CFX became part of the investment process, aligning itself with Bar Works in a way that would comfort an investor who knew little about the scheme themselves but who trusted an Fca-authorised firm not to expose them to risk.”
Mrs Richards said she assumed a company regulated by the FCA would do due diligence so investors’ money is safe. “We become victims for a second time when we don’t get help from the regulated financial institutions involved.”
Investing in firms not regulated by the FCA can void your right to complain to the Financial Ombudsman Service (Fos) or Financial Services Compensation Scheme, making it hard to get your money back if the worst happens.
CFX denies responsibility for investors’ losses. In a statement, its lawyers told
“Centralfx did not promote or seek to raise investment for Bar Works. We provided foreign exchange services for those who wished to invest into Bar Works. We had no role in marketing Bar Works to investors.”
But Mr Cotter, who has lodged 50 claims against CFX at the Fos, argues it is culpable for investors’ losses.
“Investors are entitled to trust businesses authorised by the FCA,” Mr Cotter said. “Understandably, as they were interacting with an authorised firm, investors feel they should be protected. This matter raises wider questions about the lengths to which authorised firms should be interacting with non-authorised entities where they become the gateway to damaging situations such as this.
“Time and time again investors are facing catastrophic losses under the watch of authorised firms.”
has protected Mr and Mrs Richard’s true identity because their family doesn’t know they have lost their investments.
“We are under unbelievable strain,” Mrs Richards said. “We had options before, we don’t now. Our pension is enough to live on but if one of us had to go into care we would struggle. Our loss is a total secret from our family and will be a burden. We may never tell them what happened.”