September 16, 2021

COMPLIANCE CODE CRACKER: Powers, priorities and performance – online and offline investment fraud and the FCA | Thomson Reuters Regulatory Intelligence and Compliance Learning

The worryingly high incidence of investment fraud has led lawmakers, courts and the Financial Conduct Authority FCA to raise widespread concerns about the powers, priorities and performance of the regulator in prevention and law enforcement. In a recent speech Mark Steward, FCA executive director of enforcement and market oversight, drew a distinction between online and offline fraud. He cited Operation Tidworth as an example of an investment fraud perpetrated by the use of cold-calling potential victims rather than advertising the investment offer on the internet.

With regards to the use of social media platforms for disseminating false representations about investment opportunities, he said firms such as Google may not have been aware that the law concerning financial promotions had changed in January 2021, following Brexit. Concerns have also been expressed by Nikhil Rathi, the…

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