FCA stops illegal £1.2m foreign exchange investment scheme

The Financial Conduct Authority said it had stopped an unauthorised foreign exchange investment scheme that raised at least £1.2m but never invested the money.

After an application by the FCA, the High Court made orders against people running the Noerus scheme, which attracted 65 investors.

Noerus Investment, an unauthorised Cyprus-based company, unlawfully promoted and claimed to operate a managed foreign exchange trading operation between December 2014 and November 2015, the court ruled. The judge ordered the defendants to pay £1.23m to cover losses to investors.

The FCA said it had not found enough assets to cover the money handed over by investors, who were likely to suffer losses. The court froze the assets of Noreus Investments to help the FCA recover funds.

Mark Steward, the FCA's director of enforcement and market oversight, said: "The FCA will continue to use its powers to strike down firms carrying on unauthorised regulated activities without FCA approval, to recover losses caused by misconduct and to hold accountable all those involved, including facilitators."

The FCA has repeatedly warned against falling for scam investment schemes, which often target retired people. It received more than 8,000 reports of potential scams last year and lists almost 4,000 firms to avoid on its website.

The regulator brought civil proceedings against those who promoted and operated the Noreus scheme and others whose actions facilitated it. The FCA said it had settled with some of the defendants.