The UK High Court has issued a judgment against 24HR Trading Academy Limited, run by Mohammed Fuaath Haja Maideen Maricar for providing unauthorised investment advice to consumers
The court ruled in favour of the Financial Conduct Authority (FCA) who started the proceedings against the trading signals provider. The court found that the activities performed by the company were unlawful as they had advised on investments without authorisation, and made false or misleading financial promotions.
The UK court found that 24HR Trading sent trading signals for a fee via WhatsApp making recommendations CFDs relating to currencies and commodities.
Unauthorised investment advice exposes consumers to the risk of substantial losses because the adviser has not met the FCA’s tests of competence and fitness; nor do consumers have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.
The court ordered Maricar to pay restitution in the amount of £530,000. The funds will then be redistributed to 24HR Trading customers who were wronged in the company’s alleged unlawful conduct.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:
Neither 24HR Trading nor Mr Maricar were permitted to give investment advice which, in this case, included sending trading signals via social media and their conduct risked substantial losses for customers. We urge consumers to make sure they are dealing with FCA authorised firms when seeking investment advice, including offers to provide tips or signals via social media apps, and to stay clear of unauthorised operators like 24HR Trading and Mr Maricar.
The FCA also alleges that Maricar promoted ‘partnered brokers’ and encouraged his customers to open accounts with them and place their orders through their platforms. The FCA stated that Maricar received commissions from these brokers.
Other recent warnings from the FCA can be seen below:
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.