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Warning – Ethnic Mutual Limited

We have suspended the registration of Ethnic Mutual Limited for three months, effective 14 March 2008. Ethnic Mutual is an exempt charity registered with us as an Industrial and Provident Society.

We took this action because Ethnic Mutual has been unable to satisfy us that it is operating for the benefit of the community, which is a condition of its registration.

Who does this affect?

Anyone who is a member, or is invited to be a member, who may be approached to invest in Ethnic Mutual. Also any loan customers of Ethnic Mutual, or anyone invited to apply for one.

What should affected customers do next?

Societies registered under the Industrial & Provident Societies Act may issue withdrawable share capital to finance their operations. Persons who invest in the share capital of Ethnic Mutual become members of the society. The withdrawable share capital issued by Ethnic Mutual is not subject to regulation by us under the provisions of the Financial Services and Markets Act 2000.

If Ethnic Mutual is unable to repay an investment, members are not able to claim compensation from the Financial Services Compensation Scheme. Neither members nor borrowers can refer a complaint regarding Ethnic Mutual to the Financial Ombudsman Scheme.

  • Existing loan customers – you should continue to repay them as usual.
  • If you are offered a loan, you should not accept it.
  • If you are invited to become a member, you should decline.

If you have any concerns about your position as a member or borrower, please contact:

Disclaimer

News articles on this website are accurate, to the best of our knowledge, only at the date of publication. If the information they contain changes, follow-up articles may be published.