RegulationAug 29 2014

FCA bans and fines Ucis director £350,000

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

The Financial Conduct Authority has fined Craig Cameron £350,000 and banned him from any involvement in FCA authorised firms, after it found that he lacked honesty and integrity in relation to the promotion of three unregulated collective investment schemes to retail investors.

Mr Cameron was a director of London-based financial advisory firm Burlington Associates Ltd between May 2003 and January 2009.

In early 2005, he helped to set up three high risk Ucis investing in new property developments in Croatia, Bulgaria and Montenegro, which were promoted to thousands of retail investors, according to the FCA, without adequate checks to ensure the investors were eligible.

It added that over 800 consumers invested around £30m in the schemes, which subsequently failed.

The FCA has previously taken action against two other individuals – Jeffrey Bennett and John Leslie – for failing to oversee adequately the roles of their firms in the Ucis sales. They were collectively fined £56,000 in August last year.

According to the final notice published online today (29 August), Mr Cameron wanted to involve Burlington in promoting and selling investments in the Ucis, however, the network principal prohibited these activities.

He arranged for a separate advisory firm, Leslie & Nuding, trading as Burlington Funds and now known as Leslie & Swallow, to take responsibility for checking investors’ eligibility and sending out promotional materials.

In reality, the FCA said, a firm under Mr Cameron’s control carried out the vast majority of these activities and he made staff under his direction instrumental in every stage of promoting and arranging investments in the Ucis.

The FCA stated that Mr Cameron knew his activities created a risk of the Ucis being sold to investors for whom the products were not suitable, but he “recklessly devised” a structure that was likely to provide false assurance that Burlington’s involvement was authorised.

Tracey McDermott, director of enforcement and financial crime at the regulator, said: “Cameron deliberately flouted regulatory requirements, which were designed to safeguard retail investors, in favour of selling high risk Ucis for potentially lucrative gains.

“The Ucis have failed and the investors, many of whom should never have been exposed to these high risk investments in the first place, have paid a heavy price for his actions.”

It added that any consumers who had dealings with Mr Cameron, Burlington Associates or Leslie & Nuding/Burlington Funds in relation to these investments may need to seek independent advice about their rights and options.