FCA has published a First Supervisory Notice in respect of Micro-E C.I.C, trading as Kariba. The firm, a high costs lender, appears to have misused money from loans and does not seem to have sufficient assets to cover its liabilities. Its director seems to have used the director’s loan account for personal reasons and FCA is concerned there is no viable plan, and the individual lacks the means, to repay within a reasonable timeframe. FCA is also concerned the firm has not carried out its business in the manner required of a Community Interest Company or under its Articles of Association.
FCA placed restrictions on the firm in November, banning it from making any further loans or disposing of assets other than in the normal course of business and now warns consumers that it is unlikely loans from the firm are covered by FSCS or will be considered by FOS.