Manchester-based Enterprise Investment Scheme provider and discretionary manager Great Point Investments Ltd (606798) has today been declared as failed by the Financial Services Compensation Scheme (FSCS), opening the door to ex-clients to claim compensation of up to £85,000 each.
The FSCS said that there were currently 110 'live' investment claims against the firm and one had so far been upheld, triggering the FSCS default declaration.
A default declaration means the firm is unable to meet claims against it.
The firm had been authorised by the Financial Conduct Authority (FCA) since July 2014 but went into liquidation in 2024.
Great Point operated as an Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) Manager. It also offered discretionary management services to an estate planning service.
The firm entered creditors’ voluntary liquidation on 30 July 2024 and Andrew Charters, Chris Laverty and Nick Nicholson of Grant Thornton LLP were appointed as joint liquidators.
The firm was connected to investments in Illium Limited (Illium) and Select Television Production EIS6 (EIS6).
Money put into the Great Point Estate Planning Service (GPEP) was used to purchase shares in Illium, which was a limited company. Illium used this money to provide loans to media and entertainment companies, according to the FSCS.
Select Television Production EIS6 was an alternative investment fund designed to qualify for tax relief as an Enterprise Investment Scheme.
The FSCS said its position on EIS6 and Illium differed because of how they applied their investors’ funds. For EIS6, some of the investors’ money was advanced in a way that may give rise to potential recoveries from the liquidation of Great Point Media Ltd. By contrast, the FSCS said its understanding was that for Illium, the investors’ money was not advanced to Great Point Media Ltd, and Illium is not expected to benefit from any distributions arising from that liquidation.
Illium Ltd was not believed to be a Great Point Media group company and was instead managed by Great Point Investments Ltd, a separate Great Point Media group company.
FSCS has been accepting potential claims against Great Point since August 2024.
• Editor's Note: story updated to include number of claims.