‘In­vestors can face ruin un­der the watch of au­tho­rised firms’

The Sunday Telegraph - Money & Business - - News and com­ment - Tele­graph Money: Tele­graph Money

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.”

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