Capital Alternatives will “vigorously” defend a Financial Conduct Authority court case, which accused the investment firm of promoting allegedly ‘illegal’ investment schemes, a company statement has warned.
Responding to an FCA notice on 30 July that accused firms, including Capital Alternatives, of promoting and/or operating collective investment schemes in the UK illegally, and without regulatory authorisation, the statement said the firm had promoted the investments after seeking specific guidance from the now-defunct FSA.
Legal proceedings against Capital Investments and at least 13 other firms were launched by the FCA concerning their alleged involvement in schemes that invested in global reforestation projects and African land.
The regulatory notice claimed the defendants “made misleading statements or gave false information when promoting the schemes to investors”. The FCA also froze the defendant’s assets, which would prevent them from promoting the schemes ahead of a planned hearing in the autumn.
But the statement from Capital Alternatives strenuously denied any wrongdoing. It said: “Capital Alternatives wishes to make it clear that it relied on guidance from the FSA in relation to the products which it promoted.
“Capital Alternatives will defend its position vigorously at the high court hearing listed for October. In the meantime it will continue to carry on business as usual.”
The FCA confirmed the autumn hearing and declined to comment further.
