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.”