A suspected boiler room operation has had an unlimited worldwide asset freezing order placed on it by the FCA after a High Court judge agreed that First Capital Wealth Limited posed a serious risk to consumers.
The hearing took place at the High Court on Friday 15 November. As well as the asset freeze (which prevents the firm selling its assets) the court order also stops FCW from selling investments regulated by the FCA. First Capital Wealth's website refers to the firm providing a range of financial services including wealth and asset management, trust services and "art advisory."
Tracey McDermott, director of enforcement and financial crime at the FCA, said: "We have a statutory objective to secure an appropriate degree of protection for consumers and to protect and enhance the integrity of the UK financial system.
"Stopping boiler rooms and other investment frauds, who rip-off consumers and tarnish the reputation of honest, hardworking, investment firms, is therefore an important part of the work we do."
The FCA believes that at least 20 investors together invested more than £650,000 in Berkeley Brookes LLC between July and November 2013.
The FCA has taken this action because it suspects FCW was arranging and promoting the sale of investments in Berkeley Brookes LLC without FCA authorisation. This is in breach of sections 19 and 21 of the Financial Services and Markets Act (2000).
{desktop}{/desktop}{mobile}{/mobile}
The FCA will be sending a letter to FCW's customers to keep them informed of developments. If customers do not receive these letters by 22 November they are advised to contact the Consumer Helpline on 0800 111 6768.
The FCA says that while it will do everything it can to try to return money to investors, often consumers that invest with, or via, unauthorised firms lose much of their money because the scam firms often have few assets and are not covered by the Financial Services Compensation Scheme.
First Capital Wealth Limited's registered address is 88 Wood Street, London, EC2V 7RS