The UK’s Year-Ender Fraud Broker
Rockwell Investment Management was a vehicle for financial scams, according to the Financial Conduct Authority. The scam broker firm discreetly manages investments for international private investors, trusts, and charities.
Despite targeting traders in the UK, the firm isn’t authorized by the regulator. The firm holds activities that need to be supervised.
FCA said it would undertake supervisory and regulatory work in key areas, such as ensuring cost disclosures to investors.
In early 2019, the authority saw greater evidence of scammers claiming their activities were regulated. They also witnessed poor conduct from wealth managers in high risks assets for their clients.
The year also brought financial collapse for two UK-based broker companies, including SVS Securities and AFX Markets. Both brokers were undertaking dealing activities involved with securities and CFDs that caused back-to-back shockwaves in the financial industry.
Both companies will face a few months without access to their assets as the firms re-arrange their portfolios.
UK Broker Rock Bottoms
British broker firms like Leonard Curtis declined last year. The firm confirmed they’re dealing with £277 million of custody assets and £24 million of client money at SVS.
As two brokers under the Special Administration Regime, the UK government and FCA were both put into blame.
However, recent developments from the regulator in warning against incompetence and fraud were “considerable.” FCA published a product intervention analysis with concerns that predicted lower revenues in the sector.
The regulator stopped SVS from operations for many serious allegations, including misleading the FCA and disregarding their clients’ best interests. ReedSmith partner David Calligan said this made it doubtful that FCA should take the blame for any downfalls in the industry.
The Financial Services Compensation Scheme, on the other hand, provides UK-authorized financial companies compensation if they fail. The FSCS will cover costs, including custody assets and client distribution.
Luckily, SVS Securities and AFX Markets are under protection, therefore will receive the compensations.
