FCA has commenced criminal proceedings against brothers who were directors of Collateral (UK) Limited, and who:
- dishonestly represented to investors that the firm was authorised as a P2P lender, knowing it was not;
- after FCA asked the firm to cease all regulated activities to a separate company, and transferred funds they suspected to be the proceeds of crime to the account of one of the brothers.
The firm is in liquidation.
Interestingly, FCA has brought charges under the Fraud Act 2006 and POCA, but not under FSMA.