We have published a First Supervisory Notice for Micro-E C.I.C.
This follows restrictions placed on the high-cost lender on 16 November 2022[1].
Micro-E’s director appears to have used the director’s loan account for personal reasons. We have serious concerns that the director does not have a viable plan, or the means, to fully repay the loan within a reasonable timeframe.
Micro-E does not appear to have sufficient resources to meet its liabilities. Micro-E also appears to have misused money from loans, which were meant to be used for the firm’s working capital. See full details of the First Supervisory Notice[2].
We believe that Micro-E failed to carry out its business and use its assets for the benefit of the community as required of a Community Interest Company and under Micro-E’s Articles of Association.
Are loans to Micro-E C.I.C protected?
It is important to remember that engaging with an authorised firm does not guarantee access to the Financial Services Compensation Scheme[3] (FSCS) or the Financial Ombudsman Service[4] (FOS) if things go wrong.
Whether you can access these services may also depend on whether you have received any regulated services (such as financial advice) in connection with your loan.
It is unlikely that loans made to Micro-E are covered by the FSCS or will be considered by FOS.
Find out more
Before making any payments in relation to investments, we encourage consumers to see the information on our website, including our InvestSmart[5] and ScamSmart[6] pages. Also see our published information for consumers considering investing in products offering high rates of return[7].