Following a series of warnings against Noerus Investments Limited, yesterday, the financial markets regulator FCA UK Shuts Down Noerus Capital. Will the clients of the firm be able to recover their losses?
20 December, AtoZForex – The High Court in the UK has made orders in regards a number of persons that are involved in operating an unauthorized Forex investment scheme. The orders appeared after the application by the Financial Conduct Authority of the UK (FCA).
FCA UK Shuts Down Noerus Capital
The official press release by the FCA states that with the help of the fraudulent Forex scheme, persons in question have taken at least £1.2 million from 65 investors. Yet, it appears that none of the investors’ funds were ever used in Forex trading or any other type of investment.
According to the Director of Enforcement and Market Oversight at the FCA, Mark Steward:
“The FCA will continue to use its powers to strike down firms carrying on unauthorised regulated activities without FCA approval, to recover losses caused by misconduct and to hold accountable all those involved, including facilitators.”
Specifically, Mr. Christoper Pymont QC, a Deputy Judge of the High Court, has declared that Noerus Investments Limited along with other persons has been involved in illicit activities.
The statement outlines that the persons have illegally promoted, and purported to operate a managed Forex trading entity in the period between December 2014 and November 2015. As for the High Court statement, this appears in contravention of the Financial Services and Markets Act 2000.
What now for Noerus Capital's clients?
As FCA UK Shuts Down Noerus Capital, the High Court of the UK has also issued injunctions to cap further violations. The authority has made a restitution order, which obliges Noerus Defendants to pay £1,230,298.41 to compensate the loss of investors.
In order to manage the distribution of funds, the High Court has approved a specific scheme. According to the scheme, the FCA can return all sums recovered. In addition, there is an ongoing freezing injunction of Noerus Investments Limited to assist in the recovery of funds.
The FCA has still not set the sufficient assets to cover the full amount of investors’ loss. Thus, it is most likely that there might be a shortfall in the amount funds that investors can recover.
CySEC Noerus Investments Limited Warning
Earlier in November 2015, the Cyprus Securities and Exchange Commission (CySEC) has red flagged the activities of Noerus Investments Limited. The regulator claimed that the entity has been found to be providing investment and ancillary services in the region without due authorization.
Apparently, Noerus Capital is not permitted by CySEC to provide investment and ancillary services in the Republic, pursuant to Investment Services and Activities and Regulated Markets Law, as
- It has never been authorized by the Commission
- Ιt is not a bank or a cooperative firm, established in the Republic and unauthorized to provide such services.
Think we missed something? Let us know in the comments section below.