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FCA cracks down on firms over 'unauthorised' deposits

FCA cracks down on firms over 'unauthorised' deposits

The Financial Conduct Authority (FCA) has taken court action against four individuals and three companies it alleges have taken money for investments without being authorised to do so. 

The regulator stated the individuals and the companies they controlled allegedly took money from investors with the stated aim of placing it into various projects such as foreign currency exchange trading and crypto currency investing, when not authorised to manage money or make investments on behalf of others.

The FCA is initiating civil legal proceedings in order to recover the £1.3m of assets that were taken in this way.

The matter will be heard in the High Court. The companies involved are Bright Managment Solution Limited [sic], Soccer League International, and Soccer League UK.

The regulator is also taking proceedings against senior individuals at the firms Mr Mohammed Zakir Hussain, Mr Mohammed Kabir, Mr Mohammed Abdul Kahhar, and Mr Kayes Miah. 

The regulator has secured an interim injunction to freeze the assets, pending a full hearing. 

The regulator stated: “The FCA is seeking a declaration from the court that the defendants’ actions amounted to unauthorised deposit taking as well as an order preventing them from carrying out this activity in the future.

"The FCA will also seek a restitution order to return frozen funds to consumers who were affected by these alleged breaches."

david.thorpe@ft.com

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