The latest compliance news stories from around the world, including punishments, permissionis and regulatory changes.

The High Court in London has ordered people running an unauthorised foreign exchange investment scheme to pay investors over £1.2 million ($1.6 million) to its 65 investors, after hearing that none of that money was used for investment or forex trading.

Noerus Investments Limited (an unauthorised company based in Cyprus) and other persons carrying on business under the name Noerus Capital, unlawfully promoted, and purported to operate, a managed foreign exchange trading facility between December 2014 and November 2015, in breach of UK regulations. These facts were declared by Christopher Pymont QC, sitting as a Deputy Judge of the High Court, according to a statement from the Financial Conduct Authority.

The court also issued injunctions to restrain further rule breaches and ordered Noerus defendants to must pay £1,230,298.41 to cover investors’ losses.  

It is unlikely investors will be fully repaid because the FCA, the regulator, said it had not found there is enough money to reimburse investors. The Court approved a scheme by which the FCA can return all sums recovered; it also continued a freezing injunction against Noerus Investments Limited to assist in the recovery of any further funds.