FCA has obtained confiscation orders against eight individuals convicted for role in unauthorised collective investment scheme.
On 24 May 2017, the FCA published a press release announcing that the Central Criminal Court has made confiscation orders against eight individuals convicted for their roles in the operation of an unauthorised collective investment scheme (CIS).
The eight individuals were convicted in June 2015 of various offences including breaching the general prohibition, aiding and abetting a breach of the general prohibition, conspiracy to defraud and providing false and misleading information to the FCA's predecessor (the FSA). These offences related to their role in operating a CIS without authorisation or exemption. This is contrary to the general prohibition in section 19 of the Financial Services and Markets Act 2000 (FSMA). The FCA's investigation into these activities, known as Operation Cotton, was one of the FCA's largest investigations into unauthorised activity.
The FCA states that a total of £2,195,496 will be confiscated from the eight individuals. The court directed that all sums confiscated should be paid by way of compensation to the victims of their crimes.
The FCA permissions regime is incredibly complex, and involves 64 different types of permission for consumer credit alone. Protect yourself with a structured opinion from the experts at IFAC - ask firstname.lastname@example.org here or google within this site for the permission and you'll be amazed how many articles relate.