Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FCA 'dawn raids' double in 2013 on boiler room crackdown

FCA 'dawn raids' double in 2013 on boiler room crackdown

The number of so-called 'dawn raids' conducted by the Financial Conduct Authority has almost doubled in one year. 

According to law firm Reynolds Porter Chamberlain (RPC), the regulator conducted 20 raids in 2013 versus 11 in 2012.    

RPC attributed the rise to the financial watchdog's crackdown on 'boiler room' scams.

The number is set to escalate further this year after 110 people, including 20 in the UK, were arrested in dawn raids as part of Operation Rico, a multi-jurisdiction investigation into boiler room fraud.

Last week the National Crime Agency and Kent police arrested a 21-year-old as part of the financial watchdog's investigation.

RPC regulatory partner Richard Burger said: 'Looking at all the current FCA criminal investigations it is clear that the FCA is widening the scope of its investigative responsibilities.'

He added: 'It is important that the FCA meets its consumer protection remit by cracking down on boiler room frauds but it is crucial that it doesn’t lose momentum in tackling complex financial crime like insider dealing.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter