Staff at ISA platform made redundant after liquidation | Money Marketing

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All seven staff of Northern Provident Investments (NPI) have been made redundant due to the liquidation of the company.

NPI has also ceased trading.

The Financial Conduct Authority announced yesterday that NPI entered creditors’ voluntary liquidation on 20 August 2021.

Jason Baker and Geoff Rowley of FRP Advisory Trading (FRP) have been appointed as joint liquidators.

The appointment of FPR was made at the request of NPI’s director after the business became insolvent.

FPR partner and joint liquidator of NPI Jason Baker said: “NPI has struggled to evolve in the face of changing market dynamics as attention in the ISA market shifts towards more liquid assets.

“Without the prospect of a turnaround, the director has taken the decision to voluntarily liquidate the company.

“Our focus now is on the orderly winding down of the business and engaging with the FCA throughout the process.”

The Financial Ombudsman Service has told Money Marketing that it does not have any open complaints against NPI.

In a statement it said: “The FOS’s role is to resolve complaints between consumers and regulated financial businesses.

“However, we can’t progress cases if a firm has entered administration. In those circumstances, where possible, complaints will be transferred to the Financial Services Compensation Scheme (FSCS).”

In an update the lifeboat fund said: “FSCS is aware that certain investments have failed.

“We’re also aware that some customers paid money to NPI to invest on their behalf and that money has not yet been invested.

“FSCS is in the early stages of investigating whether there are any claims against NPI that meet the qualifying conditions for compensation.”

The lifeboat added it will work closely with the joint liquidators.

NPI was authorised by the FCA from 27 July 2015.

It operated as a debt-based crowdfunding platform where customers could buy illiquid debt securities and shares.

NPI also acted as an ISA manager for the investments on offer, including mini-bonds.

The FSCS said: “Investments in mini-bonds commonly offer customers high returns, but are both high risk and highly illiquid.

“Customers may find it difficult to sell their investments if they need to access the money they invested.”

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