Financial Conduct Authority
FCA wins case against unauthorised forex firm
Following an application by the FCA, the High Court, on 14 May 2019, declared that Xcore Capital Limited (Xcore) and Jonathan Chitty had carried on an unauthorised investment scheme. The scheme took in at least £1 million from investors but only a small amount of the investors’ money was ever used for trading.
Consumers gave money to Xcore in return for a 6% annual return. They were led to believe that Xcore would be trading their money on forex and equity markets. However, the majority of this money was instead used to fund an office in Mayfair, brokers’ wages and Mr Chitty’s lifestyle. Mr Chitty’s personal spending included £102,000 on cryptocurrencies, £58,000 on luxury goods, £24,000 on a Rolex watch and £20,000 towards his wedding.
The Order declares that Xcore ran a deposit taking scheme without the necessary authorisation by the FCA, and that Jonathan Chitty was knowingly concerned in the scheme. It further requires Xcore and Mr Chitty to pay the FCA £917,231 which is the full value of all outstanding sums owed to consumers. The FCA will distribute to consumers any funds it is able to recover from Xcore and Mr Chitty.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, yesterday said:
'Prompt action by the FCA stopped this scheme in its tracks and prevented victims incurring much greater losses.
'Consumers should be especially wary when contacted out of the blue about an investment opportunity, and about financial services firms offering investment opportunities without FCA authorisation. If they’re not authorised, it’s probably a scam.'
On 20 November 2018, following an application by the FCA, a Judge in the High Court had previously imposed a freezing order on Xcore and Jonathan Chitty’s assets, and ordered to stop selling investments regulated by the FCA. This order remains in place until further order of the Court.
Notes to editors
- A freezing order and injunction was obtained against Xcore and Mr Chitty on 20 November 2018.
- The Order of the High Court (by consent) was made on 14 May 2019. The Order declares that Xcore has breached Section 19 of the Financial Services and Markets Act 2000 and that Mr Chitty is knowingly concerned in these breaches. The Order also provides for the FCA’s costs to be met by Xcore and Mr Chitty.
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has 3 operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.
Latest News from
Financial Conduct Authority
FCA highlights its areas of concern in financial services markets19/02/2020 14:05:00
The Financial Conduct Authority (FCA) has today published its annual Sector Views, an assessment of the risks and potential harm to consumers across financial services markets.
FCA bans motor finance firm’s range of online adverts19/02/2020 10:05:00
The Financial Conduct Authority (FCA) has banned a number of online adverts issued by Rix Motor Company Ltd (Rix).
The FCA fines Moneybarn £2.77m for unfair treatment of customers in arrears17/02/2020 16:20:00
The Financial Conduct Authority (FCA) has today imposed a fine of £2.77 million on car finance provider, Moneybarn Ltd (Moneybarn), for not treating customers fairly when they fell behind with loan repayments while in financial difficulties, between 1 April 2014 and 4 October 2017.
FCA appoints Sheldon Mills as Interim Executive Director of Strategy and Competition17/02/2020 10:38:00
The FCA recently announced the appointment of Sheldon Mills as the Interim Executive Director of Strategy and Competition.
New appointments to the FCA Board announced07/02/2020 10:25:00
The Treasury recently (05 February 2020) confirmed the appointment of two new Non-Executive Directors to the Financial Conduct Authority (FCA) Board.
FCA tells credit card firms to review their approach to persistent debt customers04/02/2020 10:25:00
The Financial Conduct Authority (FCA) has written to credit card firms telling them to review their approach to borrowers who are stuck in persistent debt, where they are paying more in interest, fees and charges than they are paying of their balance.
Information for firms during the Brexit implementation period31/01/2020 14:20:00
On 31 January 2020 at 11pm the UK will leave the European Union (EU) and enter an implementation period, which is due to last until 31 December 2020. During the implementation period, EU law will continue to apply. Firms and funds will continue to benefit from passporting between the UK and EEA. Consumer rights and protections derived from EU law will also remain in place.
FCA succeeds in application to Upper Tribunal to strike out P.F. International’s challenge to regulatory decision29/01/2020 10:25:00
The Financial Conduct Authority (‘FCA’) has successfully applied to the Upper Tribunal to strike out an appeal made by P.F International Limited, a franchise of the Kirby Vacuum Company. P.F. International has now exhausted its avenues of appeal. The firm had referred to the Upper Tribunal the FCA’s decision in November 2018 to remove the firm’s permissions for breaching its lending rules.