UK regulator launches proceedings against 24HR Trading Academy

Maria Nikolova

24HTA and its sole director have been advising on investments and arranging deals in investments without FCA authorisation, the UK regulator alleges.

The UK Financial Conduct Authority (FCA) today announces that it has commenced proceedings in the High Court against 24HR Trading Academy Ltd (24HTA) and its sole director, Mohammed Fuaath Haja Maideen Maricar.

The regulator alleges that from 2017 onwards, 24HTA and/or Mr Maricar have been advising on investments and arranging deals in investments without FCA authorisation, and engaging in financial promotions without being an authorised person or having the promotions approved by an authorised person. The FCA also states that Mr Maricar has been knowingly concerned in 24HTA’s contraventions.

24HTA/Mr Maricar had been transmitting ‘trading signals’ and making other investment recommendations to clients via WhatsApp and other social media platforms. Clients were told that if they followed these trading instructions, they would make significant profits. Furthermore, consumers were induced to sign up with a ‘partnered’ broker to place their trades. 24HTA/Mr Maricar would receive sign up and other commissions from the brokerages in addition to the monthly payments from clients for the signals.

The FCA has obtained an interim injunction stopping these activities from continuing and freezing the defendants’ assets up to £624,311 pending further hearing.

In this action, the regulator is seeking final orders including a declaration from the Court that the defendants carried on regulated activities without the required FCA authorisation and unlawfully made financial promotions as well as an order preventing them from carrying out these activities in the future.

The FCA will also seek a restitution order that would distribute the defendants’ frozen assets to consumers who suffered financial losses as a result of the alleged breaches of the Financial Services and Markets Act.

Read this next

Retail FX

FP Markets adds exotic FX pairs from Africa, LATAM, Asia to MT4/5 offering

“As a top-tier broker, our objective is always client satisfaction. Therefore, the additional currency pairs, which can be traded either through our MT4 or MT5 trading platforms, offer investors choice and flexibility when trading in the currency market”.

Retail FX

BaFin warns that StakeFX Markets is clone broker of BaFin-regulated broker Stak FX

Users should always check the registration of any firm they are interested in working with by visiting the local regulator website’s broker check page.

Digital Assets

FTSE Russell launches multi asset index series covering digital asset market

“FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs, both where they are now and as they prepare for change in this market.”

Technology

Sell-side analysts spend +30h/week manually closing/investigating alerts, says study

An independent report by Acuiti, and commissioned by Eventus, has found that the increasing complexity of trade surveillance requirements, driven by regulatory demands and exacerbated by volatility, is putting pressure on manual processes and driving investment in automation. 

Digital Assets

Silvergate dismisses speculation of trouble, says BlockFi exposure is minimal

Crypto-friendly bank Silvergate Capital claimed on a Tuesday blog post that it had minimal exposure to crypto lender BlockFi, which filed for chapter 11 bankruptcy protection this week.

Retail FX

Fidelity launches crypto trading for retail investors

Fidelity Investments, one of the largest brokerages in the world, has officially rolled out a commission-free crypto trading product for retail investors, starting with zero-fee trading for Bitcoin and Ethereum.

Digital Assets

ECB head calls for tougher crypto regulation after FTX collapse

President of the European Central Bank, Christine Lagarde, has called on lawmakers to start working on fresh crypto regulations to protect the financial system after the collapse of the FTX exchange.

Retail FX

CySEC updates rules for regulated brokers’ cross border activity

As CySEC’s attitude of adopting more stringent licensing guidelines and operating regulations becomes ever clearer, certain aspects of the rules and operations start to come into sharper focus.

Market News

Outlook for Gold: Can the Precious Metal Regain Power?

Gold set an all-time high at $2070 on March 08, 2022, when the price skyrocketed amid investors’ worries about the military conflict in Eastern Europe.

<