On April 27 2020 the Financial Conduct Authority announced that it has commenced civil proceedings against a firm and its director, who are alleged to have given investment advice without being authorised by the regulator.

The High Court motion filed by the FCA alleges that, since 2017, the firm has been carrying out three activities without authorisation:

  • Giving advice on investments
  • Arranging investments
  • Engaging in financial promotions relating to investments (here it is said the firm has not availed themselves of the other option of having their promotions approved by an authorised person either)

The FCA says that the firm’s director has been “knowingly concerned” in these contraventions.

The regulator adds that many of the investment recommendations to clients have been made via WhatsApp and other social media platforms, and that clients have been assured of significant profits were they to follow these recommendations.

While the court proceedings continue, the FCA has secured an interim injunction stopping these activities from continuing and freezing the defendants’ assets up to £624,311 pending further legal proceedings.

The FCA first published a warning on its website about the activities of the firm in question in September 2019.

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article.

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