In April 2021 the FCA acted to stop a Cyprus-based firm, Finteractive Limited (trading as FXVC), from offering contracts for difference to UK investors.
FXVC used a variety of inappropriate techniques, including issuing misleading financial promotions which appeared to offer consumers the opportunity to purchase shares in a well-known company and which failed to mention that they were actually promoting CFDs.
Many of the FXVC’s customers were unclear about the nature of the investments that they were being persuaded to make and the risks involved in trading in CFDs. The firm used pressure tactics to encourage consumers to invest ever-increasing sums of money. Some customers were encouraged to declare they were professional investors despite not meeting the necessary criteria for that categorisation.
The FCA has stopped FXVC from conducting any regulated activities in the UK and has required the firm to close all trading positions and return the money to customers.
FXVC operated in the UK under the Temporary Permission Regime (TPR) put in place for firms that used to operate in the UK under a passport and that wish to continue to operate following the UK’s exit from the European Union.
If you’d like to know more about how we can help you with your CFD promotion 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.