UK Court Orders 24HR Trading to Pay £530,000 Fine for Unlawful Investment Advice

The High Court recently ruled in favour of the UK Financial Conduct Authority (FCA) in proceedings against 24HR Trading Academy Limited (24HR Trading) and its sole director, Mohammed Fuaath Haja Maideen Maricar.

24HR Trading provided investment advice to consumers via WhatsApp messages without authorisation, and made false or misleading financial promotions. Its activities breached the Financial Services and Markets Act 2000 (FSMA).

The Court found that Mr Maricar was knowingly concerned in his company’s contraventions of FSMA. As part of the judgement, Mr Maricar was ordered to pay restitution in excess of £530,000, and the recovered funds will be distributed to 24HR Trading customers. The Court has also made orders preventing 24HR Trading from further breaching FSMA.

According to the Court, 24HR Trading unlawfully provided trading signals to consumers for a fee. The trading signals were sent via WhatsApp and contained recommendations about contracts for difference (CFDs) relating to currencies and commodities. The Court found that these signals amounted to unlawful investment advice.

In addition, 24HR Trading also encouraged consumers to open trading accounts with 'partnered brokers' to place their CFD trades. Mr Maricar received significant sign-up and other commissions from these brokers. This conduct was found to constitute both financial promotion and making arrangements with a view to consumers acquiring investments.