FCA warns former FXVC clients about scammers

The UK Financial Conduct Authority (FCA) today published information for former customers of Finteractive Ltd (trading as FXVC).

Let’s recall that, in April 2021, the FCA imposed requirements on Finteractive, preventing it from carrying on any further regulated activities in the UK.

The FCA has since become aware that former customers of Finteractive have been targeted by scammers, claiming that they are able to recover customers’ funds lost through trading with Finteractive. These emails have generally required consumers to make an upfront payment, often using cryptoassets.

The scams have included false emails purporting to come from the FCA and claiming that the FCA was sponsoring the recovery schemes.

Consumers should be aware that:

• the FCA would never propose that consumers should make payments to recover lost funds;
• they can call the FCA consumer contact centre on 0800 111 6768 to establish whether any communications received of this nature actually come from the FCA.

FXVC used a variety of inappropriate techniques, including misleading financial promotions which appeared to offer consumers the opportunity to purchase shares in a well-known company and 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, described by one customer as ‘relentless’, to encourage consumers to invest ever increasing sums of money. Some customers were even encouraged to declare they were professional investors despite not meeting the necessary criteria for such categorisation.

The FCA has stopped FXVC conducting any regulated activities in the UK and required the firm to close all trading positions and return the money to customers.