FCA Hits 24HR Trading Academy With Legal Proceedings

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The UK Financial Conduct Authority, or FCA, announced today that it would begin legal proceedings within the High Court against one 24HR Trading Academy Ltd, referred to as 24HTA. The FCA is taking on both the company and its sole director, one Mohammed Fuaath Haja Maideen Maricar.

Gaining Money For Unregulated Activity

According to the allegations from the FCA, 24HTA had, from 2017 onwards, advice on investments and arranged deals within investments without the authorization from the regulator. This applies to Maricar as well, with both groups engaging in various financial promotions without being an authorized entity, or having the developments themselves approved by an authorized entity. Furthermore, the FCA claims that Maricar has been knowingly concerned in the contraventions of 24HTA.

24HTA and Maricar himself have been sending “trading signals” and otherwise making investment recommendations to their clients. They did so through the use of WhatsApp and other social media platforms. Clients were told that they would be capable of generating considerable profits should they follow the trading instructions these two parties provided.

As another infringement, both 24HTA and Maricar would convince consumers to sign up to the company as a “partnered” broker to allow them to place trades. Through doing so, 24HTA and Marican would then receive sign-up, and other forms of commission alongside the additional monthly payments clients gave for the signals themselves.

Going Full Force Against 24HTA And Maricar

As it stands now, the FCA had managed to obtain an interim injunction against these two entities, stopping them from continuing these activities and freezing the assets of the defendants. As it stands now, £624,311 has been frozen, and will be subject to the results of the hearing.

Through this action, the FCA is seeking final orders, including a Court declaration that shows that these defendants had carried out activities regulated by the FCA, without its approval. Thus, they made unlawful financial promotions. Furthermore, the FCA is seeking a Court order that would prevent both these entities from carrying out these activities in the foreseeable future.

All The Money To Be Returned

Furthermore, the FCA will wish to mandate a restitution order on both these entities. Should this be successful, the frozen assets of the defendants will be distributed to the consumers who had suffered financial losses as a direct result of the alleged breaches of the Financial Services and Markets Act.

Time will only tell if the FCA is successful or not, but as it stands now, there is no reason to doubt the regulator.

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