The Financial Services Authority (FSA) today took action against two individuals suspected of providing financial advice when not authorised to do so and making misleading statements to investors.
With the assistance of the West Midlands Police, the FSA executed search warrants on three premises in the West Midlands and two individuals were arrested. Nobody has been charged at this stage in connection with the FSA’s investigation which is ongoing.
The FSA cannot comment further at this time.
Notes for editors
- Under the Financial Services and Markets Act 2000 (FSMA), persons providing financial advice or arranging deals in investments must be authorised to do so. Contravention is a criminal offence punishable by fine or imprisonment of up to two years.
- Also under provisions in FSMA making misleading, false or deceptive statements is an offence punishable by fine or imprisonment of up to seven years.
- 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.
