The Financial Conduct Authority (FCA) has imposed restrictions on car finance provider Raedex Consortium, ordering it to stop activities due to “concerns about its finances.”
The requirements will stop Raedex from entering into any new car leases, however all existing leases will remain in place.
Raedex is part of an investment scheme where consumers can invest in car leases through Buy 2 Let Cars, which is not authorised by the FCA.
In a public statement the FCA said that investors looking to invest in hire cars should not make investments through Buy 2 Let Cars, as the sums cannot be invested in cars which are then leased out.
Raedex will be able to continue to trade if it meets the FCA’s threshold conditions. The listed directors on Companies House for Raedex are Reginald Larry-Cole, Scott Andrew Martin, and Stalina Elba.
Regulatory activity in the motor finance sector was discussed at the Car Finance Conference’s Regulatory Update, which is available to view on demand here.