Excessive Court docket punishes director for WhatsApp funding recommendation
The High Court has ordered the director of an unregulated company to pay more than £ 530,000 in compensation for unauthorized investment advice.
The court found that the 24-hour commercial academy Limited, headed by Mohammed Fuaath Haja Maideen Maricar, was in violation of the Financial Services and Markets Act 2000.
Maricar did this by offering unauthorized investment advice to consumers through WhatsApp messages.
The court found that 24HR Trading was illegally providing trading signals to consumers for a fee.
It encouraged consumers to open trading accounts with “partner brokers” in order to enter into their contracts for differences.
The trading signals were sent via WhatsApp and included recommendations on Contracts for Difference in terms of currencies and commodities.
The summary judgment is a victory for the FCA, which started proceedings in the High Court against 24HR Trading and Maricar in April 2020.
Judge Jonathan Richards, who served as Assistant Supreme Court Justice, also called on Maricar to reimburse more than £ 530,000.
The collected funds will be distributed to 24HR Trading customers.
The court has also issued orders to prevent 24-hour trading from further violating the FSMA.
Mark Steward, Executive Director, Enforcement and Market Supervision at the FCA, said, “Neither 24HR Trading nor Maricar were allowed to provide investment advice, which in this case included sending trading signals on social media, and their behavior risked significant losses to clients.
“We urge consumers to seek investment advice from FCA authorized companies, including offers to provide tips or signals via social media apps, and stay away from unauthorized operators such as 24HR Trading and Maricar. “
Earlier this week, the FCA warned young investors to embark on risky investments in new research activities.
It has also launched a new digital campaign to avoid investment damage.
The campaign uses online advertising to disrupt investor journeys and direct them to the FCA websites.
New figures compiled by UK Finance show investment fraud reports increased 32 percent over the past year, with losses from these scams increasing 42 percent to £ 135 million.