UK's Financial Services Authority Continues Crackdown On Unauthorised Business By Taking Action Against Prohibited Persons

The Financial Services Authority (FSA) has continued to target those believed to be conducting unauthorised business and in particular prohibited individuals by taking action in two separate investigations.

Gary Hexley and John Cooper

In one case the FSA has charged Gary Hexley with six offences relating to investment advice given whilst unauthorised.  Hexley is a formerly approved person subject to a prohibition order preventing him from performing any function in relation to any regulated activity in the financial services industry.

The charges are as follows:

• Carrying on a regulated activity without being an authorised or exempt person, contrary to sections 19 and 23 of the Financial Services and Markets Act 2000 (FSMA); and
• Five counts of dishonestly concealing a material fact, contrary to section 397 of FSMA.

John Cooper, Hexley’s business partner has also been charged with three offences:

• Three counts of dishonestly concealing a material fact, contrary to section 397 of FSMA.

Hexley and Cooper have been bailed to attend Birmingham Magistrates’ Court on 26 October 2012.

A prohibited mortgage advisor

In a separate investigation, with the assistance of Kent Police, the FSA today executed a search warrant at an address in Kent in connection with an investigation into the provision of mortgage advice by a prohibited individual.

A 64 year old man was arrested on suspicion of committing offences under FSMA.

No-one has been charged at this stage in connection with the FSA’s investigation, which is ongoing.

No further details can be confirmed at this time.

Background

1. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.
2. The FSA will be replaced by the Financial Conduct Authority and Prudential Regulation Authority in 2013. The Financial Services Bill currently undergoing parliamentary scrutiny is expected to receive Royal Assent in late 2012 or early 2013, subject to the parliamentary timetable.