New Model Adviser (19/11/2013) reports that the FCA has seized assets of First Capital Wealth limited, which it suspects of boiler room activity. It has also sought an injunction to prevent investment sales activity, and is focusing on a property investment vehicle called Berkeley Brookes, which has in excess of £600,000 of investors' money, and was active between July and November 2013.
This is another example of the new aggressive, pre-emptive approach increasingly taken by the regulators to protect the interests of investors at an early stage.
This is an easier approach for the regulators to take; they only need to prove to the Court on the lower and civil standard of proof, i.e. upon the balance of probabilities, that illegal activity has occurred, i.e. that this firm, unauthorised by the FCA, was arranging and promoting investment in Berkeley Brookes.
The important issue for the FCA is that because of the lack of FCA authorisation, investors' money would not be covered by the Financial Services Compensation Scheme.
If you are facing a similar situation, we have specialist lawyers who deal with the financial regulators and regularly defend civil actions such as these.
Contact us by telephone on 0207 387 2032 or complete our online enquiry form here.
