UK Financial Services Compensation Scheme suspends investigation into Wealth Connection

Maria Nikolova

To date, the Scheme has not received any information from the Essex Police to help it continue with its investigation.

The UK Financial Services Compensation Scheme (FSCS) has published a rather dismal update regarding its investigation into Wealth Connection Ltd.

Since the summer of 2019, FSCS has been trying to discover if there are valid claims involving Wealth Connection Ltd, and understand its connection to Noisnep Capital Ltd.

Specifically, the Scheme has been trying to establish how investors became aware of Noisnep Ltd and its dealings with Wealth Connection Ltd. FSCS has also been examining how investors’ money was invested. But the body needs more information to determine if Wealth Connection Ltd owes a civil liability to its customers. Put otherwise, that a UK court would hold the failed firm responsible for a customer’s losses.

Last year, FSCS asked Essex Police to send it details of its investigation into one of the directors of Wealth Connection Ltd. To date, FSCS has not received any information to help it continue with its investigation.

The result is that FSCS is suspending its investigation into Wealth Connection Ltd. The Scheme notes that it may be able to restart it investigation if it receive this evidence.

FSCS opened its investigation into Wealth Connection Ltd after receiving complaints from customers who were advised to invest their pensions into various non-standard investments, some of which have become illiquid.

One of the directors of Wealth Connection Ltd was charged with fraud by Essex Police on January 20, 2016. The Director was sentenced on August 17, 2017 to six years in prison for fraud by abuse of position and two years for fraudulent trading, to run concurrently.

It was found that the Director had created a pension scheme in which he loaned money to investors. The loans, with tax relief, were invested in a property company that he was a Director of. The invested money was not used for its intended purpose and was instead used to fund the Director’s lifestyle.

Read this next

Digital Assets

Binance tames up with Japan’s biggest lender to launch stablecoins

Binance Japan is planning to launch stablecoins denominated in the dollar, euro, and yen in Japan in 2024. The crypto exchange aims to introduce these tokens, and possibly more, through its partnership with Mitsubishi UFJ Financial Group’s trust banking arm.

Institutional FX

Spot FX volumes drop +10% at CLS in August 2023

Total daily traded volume submitted to CLS for settlement took a step back in August as the summer typical lull hit market activity. The metrics showed a weak performance in the group’s FX business as the Q3 got off to a calm end while no fresh events were able to whip up a market frenzy.

Digital Assets

Veteran iGaming Team Launch Crypto Casino Portal

CryptoCasinos.Casino launches as a premier destination for crypto gambling aficionados, offering in-depth reviews, comparisons, and resources to navigate the burgeoning world of cryptocurrency-based casinos seamlessly.

Digital Assets

Xsolla Announces Acquisition of AcceleratXR, A Multi-Player Platform For Games

Xsolla enhances its gaming tech suite with the acquisition of AcceleratXR, bolstering cross-platform game development and pioneering advancements in cross-play experiences for players worldwide.

Digital Assets

OKX’s PoR report shows no solvency concerns, assets worth $11.2 billion

Cryptocurrency exchange OKX has released its 11th consecutive proof-of-reserves report amid increasing demand of crypto investors asking for transparency from exchanges they trade with.

Digital Assets

Horizen Launches Decentralized Governance with Introduction of Horizen DAO

Horizen inaugurates a novel decentralized autonomous organization, inviting broader community participation and heralding a new chapter in blockchain governance.

Digital Assets

Binance France induces users to convert their fiat into crypto

Following the expiration of its partnership with Paysafe, Binance France urged its customers to convert their fiat currency holdings on the platform into cryptocurrencies.

Industry News

Exness Crowned as Best Global Multi-asset Broker at Forex Expo Dubai 2023

Cyprus-based Exness garners top honors at the Forex Expo Dubai, solidifying its esteemed position in the global financial arena.

Retail FX

CySEC cancels license of 101investing parent following €200,000 fine

The Cyprus Securities and Exchange Commission (CySEC) confirmed on Tuesday that it has wholly withdrawn the Cyprus Investment Firm (CIF) License of FX retail brokerage firm FXBFI Broker Financial Invest Ltd, trading as 101investing.