Three people have been arrested as part of a crackdown on suspected illegal financial promotions.
Two homes in the Chelmsford and Romford areas were searched, as part of an operation led by the FCA and the Eastern Regional Special Operations Unit (ERSOU), a specialist policing unit that tackles serious and organised crime.
Adverts from firms that aren't FCA-regulated can be a warning sign of a scam. If something goes wrong, these firms aren't covered by the rules that protect people's money – meaning you could lose it with no way to get it back. If you're thinking of investing or dealing with a firm, use the FCA Firm Checker[2] to confirm it’s authorised.
All 3 individuals have been interviewed under caution.
The investigation is ongoing, and further updates will be provided in due course.
Notes to editors
- The Financial Services and Markets Act 2000 gives the FCA powers to investigate and prosecute unauthorised business cases.
- Breaching the General Prohibition is an offence under Sections 19 and 23 of the Financial Services and Markets Act 2000, punishable upon conviction by a fine and/or up to 2 years’ imprisonment.
- Communicating unauthorised financial promotions is an offence under Sections 21 and 25 of the Financial Services and Markets Act 2000 punishable upon conviction by a fine and/or up to 2 years’ imprisonment.
- Making false or misleading statements is an offence under Section 89 of the Financial Services Act 2012 by providing misleading statements, punishable upon conviction by a fine and/or up to 10 years’ imprisonment.
- Almost all firms offering financial services in the UK must be authorised by the FCA. Consumers are urged to search our Warning List of unauthorised firms and individuals[3] and remain especially wary of companies operating without permission, as this increases the risk of financial harm.
- Consumers are encouraged to use the FCA’s firm checker[2] to check whether a firm is authorised before engaging with its financial services.
- The FCA cannot comment further at this time but will make further announcements when appropriate.
- The FCA enables a fair and thriving financial services market for the good of consumers and the economy. Find out more about the FCA[4].