Leading FCA Investigation Lawyers at Criminal Fraud Specialists Bark & Co Solicitors Appointed in Financial Conduct Authority Collateral Investment Permissions Apology Case
Operation Denton – Confiscation proceedings
The directors of our client firm were able to fraudulently change their public entry on the FCA’s Interim Permission Register. This made it appear that the firm had interim permissions from the FCA for consumer credit activities. These were granted to firms which transferred from the OFT into the FCA in 2014.
The firm requested full authorisation in March 2016.During this process, there were opportunities missed to determine that the firm didn’t hold a valid temporary permission, and that the register of interim permissions was incorrect.The FCA did not take prompt action once it became aware of the problems. It should have told the firm to cease regulated activities and correct the register.
After an investigation was conducted, the FCA charged the directors. They were given a total sentence of 8 years in prison in July 2023 for their involvement in the fraud.
Over 300 investor complaints have been received by the FCA about failings in dealing with a firm.The FCA has received over 300 complaints from investors about failures when dealing with the firm.
FCA has acknowledged these complaints and has apologised to the complainants. It will pay PS500 to all those who have invested in Collateral to acknowledge their contribution to the stress and inconvenience caused by FCA errors.The FCA will also pay PS150 for any delays in handling complaints.These payments are in accordance with the FCA complaints scheme, and reflect the natures of failures on the part of the FCA.
The FCA knows that other Collateral investors may not have complained.The regulator has created a complaint form specifically for those investors to fill out and is asking them to do it before the 31st March 2025.
Stephen Braviner Roman is the general counsel of Legal, Risk, Compliance and Corporate Governance and Executive Director for the Department.
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