The UK Financial Services Authority (FSA) was one of 21 regulatory
bodies, from 18 countries, that took part in a “surf day,” looking
for internet scams. The FSA’s surveillance team identified 53 sites
in the UK for further investigation.
The FSA has announced that it will take action where necessary
to put a stop to unauthorised activity. The regulatory body has the
power to seek court orders to stop businesses trading or to wind-up
companies and partnerships.
The Surf Day was organised by the International Organisation of
Securities Commissions (IOSCO). Thirty-one FSA staff searched for
unauthorised investment deposit taking and market abuse and looked
at over 600 sites.
The 53 sites that have been identified for further enquiries
include sites that appear to offer unauthorised investment advice
and investment deals, or advertised investment products, in breach
of the law. Where activities were found which appeared to be in
breach of non-FSA legislation, then information is being passed to
the appropriate enforcement agency. On sites involving overseas
jurisdictions, the FSA will liase with its regulatory counterparts
in these places. Dan Waters, FSA Director of Enforcement, said:
“Firms that are not authorised may be either
incompetent or deliberately out to mislead. Either way if the firms
goes bust or you have a complaint you will not have the same
protections as you would have if you dealt with an authorised firm.
In particular you will not be eligible for help from the
compensation scheme or the ombudsman. The internet brings many
benefits, including improved access to markets and information but
consumers must remember: if it looks too good to be true, it
probably is.”
