24HR Trading Academy unlawfully advised on investments
What has happened?
In March 2021 the High Court delivered a summary judgement in proceedings commenced by the FCA, ruling that 24HR Trading Academy Limited, run by Mohammed Fuaath Haja Maideen Maricar, had contravened the Financial Services and Markets Act 2000 by providing unauthorised investment advice to consumers via WhatsApp messages. The Court also found that Mr Maricar was knowingly concerned in his company’s contraventions of FSMA.
What do you need to do?
Judge Jonathan Richards sitting as a Deputy High Court Judge ordered Mr Maricar to pay restitution in excess of £530,000. The recovered funds will be distributed to 24HR Trading’s customers. The Court has also made orders preventing 24HR Trading from further breaching FSMA.
The Court found that 24HR Trading unlawfully provided trading signals to consumers for a fee. The trading signals were sent via WhatsApp and contained recommendations about contracts for differences relating to currencies and commodities. The Court found that these signals amounted to unlawful investment advice.
24HR Trading also encouraged consumers to open trading accounts with its ‘partnered brokers’ to place their CFD trades. Mr Maricar received significant sign-up and other commissions from these brokers. This conduct was found to constitute both financial promotion and making arrangements with a view to consumers acquiring investments.
24HR Trading and Mr Maricar were not authorised by the FCA or exempt from authorisation, and the promotional communications were not approved by an authorised person.
How can we help you?
If you’d like to know more about how we can help you with any aspect of your FCA permissions, CFD promotion, trading signals or financial promotion arrangements, or any other regulatory compliance issues, our expert team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.