London-based firm Marvell Enterprises Ltd has failed with the Financial Services Compensation Scheme.
The FSCS stated that Marvell was involved in offering high-yield bonds and Isa products and carrying out regulated investment activities for which it did not have permission.
The FSCS reported that, to date, it has received 11 claims related to investment advice and bonds, the first of which has now been upheld.
The remainder of the claims remain in progress.
The lifeboat scheme announced back in July 2022 that it had started to consider customers’ claims against Marvell.
The FSCS worked with the Financial Conduct Authority and the Financial Ombudsman Service to investigate Marvell’s activities. Investigations were completed in August 2023.
As a result of the claims made against it, the FSCS declared Marvell Enterprises Ltd “in default” on October 13 2023, meaning that the scheme can now pay compensation to customers if claims are valid.
The FSCS is now considering whether valid claims exist under its rules in connection with those activities.
All claims will be considered on a case-by-case basis, to determine whether complainants are eligible for compensation.
Marvell was incorporated on July 2 2019 and was registered with the FCA from January 16 2021 as a limited permission credit broker, with secondary broking permission.
The firm was subsequently closed to business on November 11 2021.
tom.dunstan@ft.com
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