Regulation  

FCA warns on three unauthorised firms

Last week proved to be relatively slow win terms of alerts from the Financial Conduct Authority over unauthorised firms, with just three firms being identified as targeting UK consumers with services that might appear to be regulated advice.

The three firms, which the regulator warned may be targeting UK customers despite not having regulatory permission to do so, were:

• Cover Driver, trading as Coverdriver.co.uk;

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• XP Markets Ltd (London); and

• Rubin Price Securities (New York).

Unusually, no clone firms were among the regulator’s warnings.

Customers who invest with unauthorised firms will not have recourse to the Financial Ombudsman Service or the Financial Services Compensation Scheme should the investments fail.

The FCA has issued a slew of warnings over the three months since it officially took over conduct regulation from the Financial Services Authority, as part of an effort to tackle issues before they arise as major scandals or result in large-scale losses.