In July 2013, the FCA issued proceedings against 16 parties alleged to have been involved in unregulated investment schemes against Capital Alternatives.
They alleged that two investment schemes known as African Land and Reforestation Projects (also known as Capital Carbon Credits) were operating illegally.
The High Court ruled that the scheme were collective investment schemes and therefore should have been regulated by the FCA.
The judge ruled that African Land was managed as a whole and that the investors had little involvement in the management of the scheme.
Permission to appeal was given to African Land and the Australian carbon credit scheme that fell under the Reforestation Projects but the Sierra Leone and Amazon carbon credit schemes which were also part of those projects were refused.
This is, yet again, another example of the new enhanced proactive and aggressive stance that the FCA is taking towards financial regulation.
Should you require advice on FCA regulatory matters or unregulated collective schemes please contact our specialist solicitors on 0207 387 2032 or complete our online enquiry form here.