The FCA acted in May 2021 by issuing a First Supervisory Notice to stop a Cypriot-based firm, ICC Intercertus Capital Ltd, and other members of its group which trade as EverFX, from offering contracts for differences to UK investors.
The EverFX Group used the fact that ICC Intercertus was regulated in the UK to convey the impression of 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 led to some consumers losing very significant sums of money, and since January 2020, the FCA has received 76 complaints or expressions of concern about the activities of the EverFX Group. Of these, 34 were made in 2021, while the Firm was in the Temporary Permission Regime (the TPR).
The FCA has now stopped ICC Intercertus from conducting any regulated or marketing activities in the UK and has also directed it to take all reasonable steps to stop other members of the EverFX Group from doing the same thing. It has also ordered the firm to close all customer trading positions and return the money to customers.
ICC Intercertus was operating in the UK under the TPR, put in place for firms that used to operate in the UK under the EEA passporting regime and wished to continue to operate in the UK following the UK’s exit from the European Union. Firms operate under the TPR until their applications for full authorisation by the FCA can be considered.
If you’d like to know more about how we can help you with your firm’s CFD promotional and marketing arrangements, or any other regulatory compliance issues, our expert team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.