The Financial Conduct Authority has launched criminal proceedings against two brothers who allegedly dishonestly claimed their firm was authorised.

The brothers, Peter and Andrew Currie, were the former directors of Collateral (UK) Ltd (Collateral), a peer to peer lending company.

The brothers each face two charges under the Fraud Act 2006 and one charge under the Proceeds of Crime Act 2000.  

The watchdog alleges that the Curries dishonestly claimed to investors that Collateral was authorised and regulated by the FCA to operate as a peer-to-peer lender “knowing this was untrue.” 

The FCA also alleges that shortly after Collateral was asked by the FCA to cease conduct of all regulated activities in January 2018 - and shortly before the company ceased trading - the brothers dishonestly abused their positions by transferring funds to a separate company.

They are also accused of transferring further sums that they knew or suspected were the proceeds of crime into the bank accounts of Andrew Currie.

Collateral is insolvent and is now in liquidation.

Peter and Andrew Currie, both aged in their late fifties, are due to appear at Westminster Magistrates Court on 26 January.