The Financial Conduct Authority (FCA) has won its battle against two unauthorised investment schemes after the High Court ruled they were to be classed as collectives and therefore must be regulated.
The FCA asked the courts in June last year to find that two alternative investment schemes promoted by Capital Alternatives - rice harvest promoters African Land and carbon credit scheme Reforestation Projects - were acting illegally. The FCA said the defendants, which include at least 15 other firms, had structured their schemes to try to avoid the need to be regulated by the FCA. It argued that while it did not regulate the sale of land, property or carbon credits, it did regulate collective investment schemes (CISs) and a firm must be authorised by it to operate them from the UK. ...
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