Court finds 24HR Trading Academy unlawfully promoted CFD trading
The High Court has delivered a summary judgement in proceedings launched by the Financial Conduct Authority (CA) against 24HR Trading Academy Limited.
The Court determined that 24HR Trading, run by Mohammed Fuaath Haja Maideen Maricar, contravened the Financial Services and Markets Act 2000 (FSMA) by providing unauthorised investment advice to consumers via WhatsApp messages. The Court also found that Mr Maricar was knowingly concerned in his company’s contraventions of FSMA.
Judge Jonathan Richards sitting as a Deputy High Court Judge also ordered Mr Maricar to pay restitution in excess of £530,000. The recovered funds will be distributed to 24HR Trading customers. The Court has also made orders preventing 24HR Trading from further breaching FSMA.
The Court found that 24HR Trading unlawfully provided trading signals to consumers for a fee. The trading signals were sent via WhatsApp and contained recommendations about CFDs on currencies and commodities. The Court found that these signals amounted to unlawful investment advice.
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.
24HR Trading also encouraged consumers to open trading accounts with ‘partnered brokers’ to place their CFD trades. Mr Maricar received significant sign-up and other commissions from these brokers. This conduct was found to constitute both financial promotion and making arrangements with a view to consumers acquiring investments.
24HR Trading and Mr Maricar were not authorised by the FCA or exempt from authorisation, and the promotional communications were not approved by an authorised person.
Let’s recall that the FCA launched proceedings in the High Court against 24HR Trading and Mr Maricar in April 2020.