The Financial Conduct Authority (FCA) has fined Argento Wealth Ltd. (AWL) and its director, Daniel Willis, £1.6 million.
The FCA takes action to protect investors, demonstrate control over the activities of brokerage firms, and maintain market integrity, WikiFX reported.
The FCA accused AWL of engaging in unlawful investment activities, in particular taking deposits of £2.8 million under loan agreements and as part of an unauthorized collective investment scheme.
The watchdog also identified AWL's involvement in an investment scheme in EMB Fund Limited (EMB) worth approximately $9 million, which it found to be in breach of restrictions on financial promotion.
The FCA's action against AWL was prompted by the broker's activities in advertising and promoting illegal investment schemes. Company director Daniel Willis is accused of knowingly participating in the illegal activities.
The FCA had previously frozen AWL's assets and initiated legal proceedings. Timely action to freeze the accounts paved the way for the court's decision, which was taken to protect investors from potentially exploitative activities.
The settlement agreement between the FCA and AWL is designed to allow AWL to recover its legal costs from its remaining assets. It will also preserve funds to compensate victims of the broker's illegal activities. However, the FCA has warned that investors could face significant losses as a result of the broker's illegal activities.
Regulatory oversight, particularly by the FCA, is designed to protect investors and the financial markets. The FCA demonstrates its commitment to tackling illegal investment schemes by conducting ongoing surveillance and resolving disputes through the courts. Judicial resolution is important to ensure that wrongdoers are punished fairly and that affected investors are compensated. The FCA is committed to ensuring that financial crime does not go unpunished.
The Financial Conduct Authority is the regulatory body responsible for overseeing the activities of financial firms to maintain market integrity. The FCA's role is to protect customers, ensure stability in the industry, and foster healthy competition between legitimate financial services providers. The FCA supervises financial institutions to ensure the integrity of the UK financial market.
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