The UK Financial Conduct Authority (FCA) has written to investors in Novus Black Fund UK Ltd about the firm’s unreported losses.
Novus Black Fund, an alternative investment fund based in the UK, is managed by MCI Global Investment Advisors Limited. UK regulations require this type of fund to have a regulated fund manager – known as an authorised alternative investment fund manager (AIFM). Among other things, the role of an AIFM is to manage the assets held by the fund and to provide risk management.
From the information available, the FCA believes the fund has experienced significant losses that have not been reported to investors.
On 8 August 2024 and 6 September 2024, following FCA’s invitation, MCI agreed to a number of restrictions, which meant it has to:
- Make sure no trades or payments were allowed on any trading accounts held by the Novus Black Fund.
- Close any open investment positions held by Novus Black Fund.
- Notify investors of these restrictions.
The FCA said:
“We know this will cause concern for people who have invested money in the Novus Black Fund and we will provide further updates in due course. We are unable to comment any further at this time”.
