FCA Halts Boiler Room 'First Capital Wealth' From Duping Investors

The UK's financial watchdog, the Financial Conduct Authority has intervened to prevent a suspected boiler room from operating. The regulator

fcaA suspected boiler room operating across three continents has been put under the regulatory radar by the Financial Conduct Authority (FCA). In a notification issued by the FCA, the regulator announced that it had placed a worldwide asset freeze on First Capital Wealth.

First Capital Wealth is believed to be an intermediary to various bogus investments including Berkeley Brookes. In the FCA notification, First Capital Wealth is believed to have taken over $1 million from 20 investors thus putting the firm in breach of sections 19 and 21 of the Financial Services and Markets Act (2000).

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First Capital Wealth provides details of its four offices situated in London, Hong Kong, Johannesburg and Abu Dhabi. In addition, it provides details of its management team, David Welsh is Chairman of Corporate Governance.

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The latest boiler room scam comes after three Britons were found guilty of fraud in the United States in July this year. Details in the FCA briefing state that the First Capital Wealth fraud took place between July and November 2013.

“The FCA has taken this action because it suspects First Capital Wealth was arranging and promoting the sale of investments in Berkeley Brookes LLC without FCA authorisation; this is in breach of sections 19 and 21 of the Financial Services and Markets Act (2000),” the FCA noticed stated.

Since taking over from the FSA in April 2013, the FCA has been adamant on maintaining confidence in the UK’s financial services sector. Investors who have suffered at the hands of First Capital Wealth are encouraged to contact the regulator.

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