The FSA obtains injunction against company to restrain unauthorised investment business
18/10/1999
The FSA announced today that it had obtained a High Court injunction against Moneywise Investments Limited ("Moneywise"). The injunction restrains Moneywise from carrying on unauthorised investment business in contravention of section 3 of the Financial Services Act 1986. The injunction made against Moneywise will remain in place until trial or further order of the Court.
Moneywise acted for clients based primarily in France and offered to deal on behalf of its clients in a range of investments. Moneywise is incorporated in the British Virgin Islands but used offices in London at International House, 1 St Katherines Way, London E1 9UN, also occupied by Marshall French and Lucas ("MFL") a derivatives trader regulated by the Securities and Futures Authority.
The FSA has evidence to say that approximately US$150,000 of funds received into Moneywises London bank account was subsequently paid by Moneywise to MFL. Provisional Liquidators were appointed to MFL on 8 October 1999 pending the hearing of the FSAs petition for the compulsory winding up of MFL under section 72 of the Financial Services Act 1986. The petition will be heard on 24 November 1999.
Notes for editors
Moneywise Investments Limiteds registered office in the British Virgin Islands is at Akara Building, 24 De Castro Street, Wickhams Cay I, Road Town, Tortola, BVI. It is not connected with Moneywise Investments plc, a PIA regulated firm operating from Forest Gate, London.
Section 3 of the Financial Services Act provides that no person shall carry on or purport to carry on investment business in the UK unless he is an authorised or exempted person under the Act.
Section 72 of the Financial Services Act states that on the FSAs application the Court may wind-up an authorised person or appointed representative if the person is unable to pay his debts within the meaning of section 123, or as the case may be, section 221 of the Insolvency Act 1986 or the Court is of the opinion that it is just and equitable that the person should be wound up.