Park First: What happened and what is the solution for investors?
The Financial Conduct Authority (FCA) began investigations into the Park First scheme. Following these in investigations it became very evident that the company had collected over £230m from around 4,500 people by offering them returns of up to 12% if they invested £20,000 at a time. The scheme was claiming to put these investments into parking spaces at Gatwick and Glasgow airport.
The FCA are taking legal action against those behind the scheme and investors have been hoping for compensation following the announcement of Park First's liquidation earlier in the year.
The FCA are also claiming that it was an "Illegal Collective Investment Scheme" that was "promoted to the public using false or misleading statements". Park First is just the latest in many schemes, most related to property, to have disappointed investors who were hoping for decent returns.
The FCA have recently asked the court to order Park First to pay a sum to the FCA which can then be distributed among the investors who suffered losses.
In a recent statement on the FCA website, it said: "The FCA is now of the view that it is necessary to start proceedings against the defendants. In doing so, it expects the defendants to continue to co-operate with the administrators and to honour their commitments. The FCA is concerned, however, unless proceedings are brought, it will not be possible to ensure that the defendants take all the steps that they should to reduce investors' losses."
The FCA alleged it involved an unauthorised collective investment scheme which was set up to operate car park investments using funds from investors.
Investments in the car parking schemes were sold to individuals and corporates in the UK and internationally, both directly and through self-invested personal pensions (SIPPs).
Another source has stated that the investors were mostly elderly and put money into the scheme, many of whom also lost money with London Capital & Finance.
If you would like further clarity on what happened and is now expected to happen with Park First, please get in touch with a member of our team on 01903 868 251.
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