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Formerly known as Cornhill Capital, Pello Capital Ltd has recently faced a series of significant challenges that have had far-reaching implications for its clients and investors. As we navigate through the intricate details of this case, we aim to shed light on the regulatory actions, liquidation, and ongoing investigations surrounding Pello Capital Ltd.
In recent times, Pello Capital Ltd has garnered attention as it grapples with the aftermath of its voluntary liquidation. The company has ceased accepting new business, but it is still obligated to uphold stringent standards in its dealings with customers. The Financial Conduct Authority (FCA) has imposed specific requirements that restrict the firm from conducting regulated activities and disposing of its assets, adding further complexity to an already complicated situation.
To understand the full scope of Pello Capital Ltd's journey, it is crucial to explore its connection to Cornhill Capital and its related entities. Over the years, various name changes and associations have shaped the company's trajectory. From Cornhill Fund Management LLP to Cornhill Capital Limited and Cornhill Asset Management Ltd, these connections offer insights into the historical backdrop of Pello Capital Ltd and its current standing.
As the Financial Services Compensation Scheme (FSCS) investigates the firm, customers have submitted claims seeking compensation for their losses. The FSCS, often referred to as the UK's lifeboat scheme, is diligently working alongside administrators to assess the eligibility of these claims.
The outcome of this investigation holds considerable importance for those affected, as it will determine the extent of financial redress they may receive. Let’s take a closer look.
Following their entry into voluntary liquidation on 15th November 2022, Pello Capital Ltd made the difficult decision to cease taking on new business. However, despite this change in their operations, the firm remains obligated to meet the established standards for dealing with its existing customer base.
The Financial Conduct Authority (FCA) has imposed specific requirements on Pello Capital Ltd, which prohibit them from conducting regulated activities and disposing of assets. These restrictions further complicate the situation and pose significant challenges for the company.
The history of Pello Capital Ltd is intertwined with various entities, including Cornhill Capital and its related firms. Over the years, the firm has undergone several name changes and associations, with Cornhill Fund Management LLP, Cornhill Capital, Cornhill Capital Limited, and Cornhill Asset Management Ltd all playing a role in shaping Pello Capital Ltd's trajectory.
Understanding these connections provides valuable insights into the firm's background and the factors contributing to its current state.
The Financial Services Compensation Scheme (FSCS) has recently taken an active role in investigating the circumstances surrounding Pello Capital Ltd. On 9th May 2023, the FSCS announced that it is now accepting claims against the firm. As the UK's lifeboat scheme, the FSCS is working closely with the administrators to carefully evaluate the eligibility of customers who have submitted compensation claims.
The outcome of this investigation will determine the extent to which affected customers can seek financial redress.
From 5th February 2007 until 15th November 2022, Pello Capital Ltd operated as an authorised wealth management firm. During this period, they provided a comprehensive range of services to their clients, encompassing stockbroking, online share dealing, foreign exchange trading, corporate broking, and pensions.
However, due to the regulatory actions taken by the FCA and subsequent liquidation, Pello Capital Ltd's ability to continue delivering these services has been significantly curtailed, causing disruption to their clientele.
The Financial Ombudsman Service (FOS) has handled several cases involving Pello Capital Ltd, shedding light on the firm's track record and customer disputes. While the first two cases from 2018 and March 2020 did not receive favourable rulings, the subsequent two cases from June 2020 and November 2021 were upheld.
The June 2020 claim centred around unsuitable investment advice, resulting in the FOS ordering Pello Capital Ltd to compensate the client with £29,000. The November 2021 case involved both unsuitable advice and a fraudulent withdrawal from a client's account, leading to further compensation and holding Pello Capital Ltd accountable for the withdrawal error.
Notably, the FOS supported the client's claim that Pello Capital Ltd had failed to take reasonable precautions to prevent the fraudulent activity that occurred as a result of the client's hacked email account.
Investors and customers must closely monitor the developments surrounding this case to understand the potential implications for their financial interests.
This is where we come in. If you believe you have been affected by Pello Capital, please enter your details below for a free no-obligation chat regarding opening a claim.
You are not obliged to use our service. It is possible for you to present your claim for free, either to the firm, or person against whom you wish to complain, or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.
