Unauthorised investment advisors - FCA commences civil proceedings
The FCA has announced that it has commenced civil proceedings in the High Court against 24HR Trading Academy Ltd and Mr Mohammed Fuaath Haja Maideen Maricar (sole director at the firm) for allegedly advising on investments, arranging dealings in investments and engaging in financial promotions without authorisation, or not having such promotions approved by an authorised person. In the alternative, the FCA alleges that Mr Maricar was knowingly concerned in such contraventions.
The FCA’s allegations date from 2017 onwards and concern investment recommendations communicated to clients via WhatsApp and other social media platforms. Clients were induced to sign up with a ‘partnered’ broker to place their trades, following which the firm and/or Mr Maricar would receive commission. The FCA has secured an interim injunction to put a stop to these activities and to freeze the defendants’ assets, up to a value of £624,311, pending further hearings.
The FCA is seeking several final orders from the court, including: (i) a declaration that the defendants carried on regulated activities without authorisation and unlawfully made financial promotions; (ii) a prohibition order to prevent the firm and individual from carrying out regulated activities in the future; and (iii) a restitution order to distribute the defendants’ frozen assets to consumers who suffered financial losses as a result of the alleged breaches of FSMA 2000.
Press release: FCA commences civil proceedings against a firm and senior individual for allegedly providing unauthorised investment advice
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