Three arrested in FCA boiler room investigation

The Financial Conduct Authority (FCA), with the assistance of the City of London Police, yesterday morning executed search warrants at six addresses in Kent, Essex, and Bedfordshire.

Three individuals, including two men aged 32 and 41, and one woman aged 32, were arrested and interviewed in connection with an investigation into boiler room activity.

The arrests are not linked to any other ongoing investigation.

No further details can be confirmed at this time and no individuals have been charged.

Notes for editors

  1. Boiler room operations usually use high-pressure selling techniques to persuade consumers to buy shares that are often worth very little or nothing at all. Because the people selling shares through  boiler rooms do not have permission from the FCA to do so, boiler room scams constitute unauthorised business. Carrying out unauthorised business is an offence punishable by terms of up to two years imprisonment or a fine or both, and money laundering is punishable by up to seven years imprisonment or a fine or both.
  2. You should only deal with a financial services firm that is authorised by us, and check the Register to ensure it is. If you deal with an unauthorised firm you will not be covered by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS) if things go wrong.
  3. The Financial Services and Markets Act 2000 gives the FCA powers to investigate and prosecute unauthorised business cases.
  4. Almost all firms offering financial services in the UK must be authorised by us. Search our list of unauthorised firms and individuals to be especially wary of.
  5. On the 1 April 2013 the Financial Conduct Authority (FCA) became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
  6. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
  7. Find out more information about the FCA.