FSA wins £3.7m compensation for investors in unauthorised scheme

21 July 2010

The Financial Services Authority (FSA) has helped investors in an unauthorised scheme reclaim almost £3.7 million in compensation.

Upton & Co Accountants has been ordered to pay the money out after a High Court ruling supported the findings of an FSA investigation, which revealed how the firm was running a number of investment funds without appropriate permission.

Investors were offered the opportunity to put their money into a currency plan, which would supposedly be used to invest in foreign exchange markets.

However, the FSA investigation, which began in February 2009, found that a small amount of trading occurred, which led to the firm’s assets being frozen.

Margaret Cole, director of Enforcement and Financial Crime at the FSA, said that it is rare for investors in this kind of case to reclaim any of the money they have lost.

“As we intervened early in the scheme's life cycle we were able to recover a large proportion of the original amount invested.

Normally the amount recovered - if any - is often just a few pence in the pound so securing this amount is a real coup."

A £3.6 million sum will be distributed immediately with a further £840,000 to be provided to investors in monthly instalments.

By Jim Ottewill

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