The Financial Conduct Authority (FCA) has imposed multiple restrictions on motor finance provider Raedex Consortium, requiring the firm to cease conducting regulated activities.
Raedex is part of an investment scheme where consumers can invest in car leases through Buy 2 Let Cars and Rent 2 Own Cars. The scheme is conducted through Buy 2 Let Cars, which is not FCA authorised.
The requirements will stop Raedex from entering into any new car leases, however all existing leases will remain in place and any customers of Raedex who have leased a car, need to continue to make payments under their leases.
The FCA implemented the restrictions over concerns around the company’s finances. The restrictions include:
- Raedex must not, without the prior written consent of the FCA, in any way dispose of, withdraw, transfer, deal with or diminish the value of any assets it holds or receives, for itself or on behalf of another.
- The firm must as soon as possible, and by no later than close of business on 26 February 2021, notify in writing all consumers and prospective consumers of the imposition and effect of the new restrictions.
- By close of business on 22 February 2021, Raedex must display, in a prominent place on all its websites and any other electronic communication channels, such as social media, a notice setting out the terms and effect of the restrictions.
- The company must secure all books and records and preserve all information and systems relating to its business and must retain these in a form and at a location within the UK.
- Raedex must remove, or where this is not practicable give instructions for the removal of, any advertising and financial promotions it currently has live, in whatever form they take, by close of business on 26 February 2021.
- The firm will use best endeavours to direct the members of the group to stop all advertising of investments or loans and will confirm to the FCA by close of business on 26 February 2021 the steps it has taken to ensure this.
- The company will use best endeavours to direct the members of the Group not to dispose of, withdraw, transfer, deal with or diminish the value of any assets it holds or receives on behalf of itself or another.
- Raedex may continue to collect and/or facilitate the collection of pre-existing regular vehicle lease payments.
Back in 2018, Motor Finance spoke to Reginald Larry-Cole, managing director of Buy 2 Let Cars, about the launch of the company.