The Financial Conduct Authority (FCA) has censured Catalyst Investment group for misleading investors in its promotion of ARM Asset Backed Securities bonds and has fined its former chief executive, a former director, and the ex-compliance officer.
The FCA has censured Catalyst for "recklessly misleading investors" when promoting bonds offered by ARM between November 2009 and May 2010. Catalyst has been censured as it is unable to pay a fine and is in default - the FCA would otherwise have imposed a £450,000 penalty. Catalyst offered bonds issued by Luxembourg-based ARM to investment intermediaries and IFAs in the UK, who in turn promoted and sold them to retail investors. ARM applied for a licence to issue the bonds from the Luxembourg financial regulator, the CSSF. Catalyst knew that ARM had applied for a licence in July...
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