The Financial Conduct Authority (FCA) has prohibited a Cyprus-based investment firm from conducting any regulated activity in the UK.
ICC Intercertus Capital and other members of its group, which trade as EverFX, were offering high risk contracts for differences (CFDs) to UK investors.
This is the second time in a month that the FCA has prohibited a Cyprus investment firm from conducting any regulated activity in the UK, after it stopped Finteractive Limited, which traded as FXVC.
The regulator said EverFX Group “used the fact that ICC Intercertus was regulated in the UK to convey legitimacy”, however, “many consumers were subsequently induced to transact with overseas members of the EverFX Group, which had no authorisation to provide regulated services in the UK meaning that consumers lacked the same level of protection”.
The FCA “identified serious concerns” with the sales and marketing practices of the EverFX Group, including the use of “misleading financial promotions, failing to inform consumers about the nature and risks of CFDs, applying pressure to invest additional funds, instructing clients on which trades to make, and failing to allow customers to withdraw funds”.
This has led to some consumers losing “very significant sums of money”.
TPR regime
The UK watchdog has prohibited ICC Intercertus from conducting any regulated or marketing activities in the UK and has directed it to take all reasonable steps to stop other members of the EverFX Group doing the same.
It has also ordered the firm to close all trading positions and return the money to customers.
ICC Intercertus was operating in the UK under the Temporary Permission Regime (TPR), put in place for firms who used to operate in the UK under the EEA passporting regime and wished to continue to operate in the UK following its exit from the EU.
Firms operate under the TPR until their applications for full authorisation by the FCA can be considered.
