FCA wins High Court case against unauthorised forex firm

To repay £900,000 to customers

A financial services firm that received at least £1m from investors but only used a small amount of it for trading has been held to have carried out an unauthorised investment scheme.

The High Court declared Xcore Capital Ltd and director Jonathan Chitty should have their assets frozen in late November 2018 before, on 14 May, the court held their foreign exchange investment scheme had breached the Financial Services and Markets Act 2000. The investment scheme led people to believe it would trade their money on forex and equity markets and customers invested money under the impression they would receive a 6% annual return. Instead, however, the majority of the money was used to fund an office in Mayfair, brokers' wages and Chitty's lifestyle. The Financial Conduct A...