Gibraltar Financial Services Commission (GFSC) – Did they fail Loan Note Holders?

As a loan note holder, you may have placed your trust in regulatory bodies such as the Gibraltar Financial Services Commission (GFSC) to safeguard your interests. After all, the GFSC confirmed that Castle Trust and Management Services Limited (CTMS) was authorised to conduct regulated activities under the Financial Services Act 2019, including acting as a professional trustee.

The GFSC also stated that CTMS, as a professional trustee and pension scheme operator, was required to hold professional indemnity insurance, offering further reassurance to loan note holders like yourself. You would expect this oversight to ensure that your investments were secure and managed responsibly.

Misleading Practices Exposed?

Unfortunately, the reality was far from the assurances that were given. CTMS was recklessly issuing security trust deeds to retail investors, with many unsuspecting individuals unaware of the potential risks. These deeds were handed out without the necessary security or sufficient charges being placed on company assets to protect the value of the loan notes. This left loan note holders like you dangerously exposed.

Pension holders were also drawn into transferring their pensions to CTMS, only to find out—often when it was too late—that their funds were being funnelled into illiquid and highly risky schemes. These investments, which offered little to no security, led to devastating losses, with some pension holders losing their entire life savings.

The scale of the damage is shocking. Without the worthless security trust deeds issued by CTMS, retail investors alone would not have lost over £125 million tied to High Street Grp Ltd (HSGL). This is just one case—many other trustee arrangements involving CTMS have failed, leading to further financial devastation for loan note holders and pensioners alike.

A Chance for Recovery

However, there may still be hope. Insolvency & Law (I&L) has uncovered a potential cause of action that could provide a pathway to recovering some of these significant losses. Evidence suggests that between 31st July 2019 and 14th September 2019, there were critical defects in the security or pension transfer processes. If your loan note security or pension transfer occurred during this window, there may be a chance to recover your lost funds.

We’ve identified a well-funded party that could bear responsibility for the losses incurred during this period. Therefore, if you purchased loan notes or transferred your pension between 31st July and 14th September 2019, we strongly urge you to contact us at investigations@insolvencyandlaw.co.uk.

It’s important to understand that this isn’t limited to High Street Grp Ltd (HSGL) loan note holders. If your loan note issuer has entered administration or liquidation, or if your pension transfer took place during the specified period, you could be eligible to claim.

Take Action Now

This call to action is separate from the ongoing Third-Party Action that Insolvency & Law is pursuing against CTMS on behalf of High Street Grp Ltd Loan Note Holders (HSGL LNHs). However, if your loan note was issued during this critical period, please let us know as soon as possible, as there may be additional recovery options available to you.

Time is of the essence. Contact us today at investigations@insolvencyandlaw.co.uk, and let us help you take the next steps towards potentially recovering your lost investments or pensions.