The Financial Conduct Authority and the North Yorkshire and West Yorkshire Police, have arrested a 49-year old male as part of an investigation into insider dealing and market abuse.

The Financial Conduct Authority has with the assistance of the North Yorkshire and West Yorkshire Police, arrested a 49-year-old male as part of an investigation into insider dealing and market abuse.

The authorities executed a search warrant in Harrogate this morning and are currently holding the individual, who has not yet been charged, in custody.

According to the UK financial regulator, no further details can be confirmed at this time. However, the FCA did say that “the arrests are not linked to any other ongoing insider dealing investigations”.

Insider dealing is a criminal offence that is punishable by a fine or up to seven years imprisonment in the UK. So far, the FCA, and previously the Financial Services Authority, have secured 23 convictions on insider dealing since March 2009, and is currently prosecuting seven other individuals.

FCA busts yet another clone

The financial watchdog also warned of yet another clone firm, marketing itself to UK investors. The fraud firms have been a growing trend as the regulator recently has issued a series of warnings against the boiler room firms, which may contact people out of the blue and attempt to scam them.

In this respect, the firm Amber Asset Management is a clone of the FCA authorised firm Amber Fund Management located in London Bridge.

The firm said in a statement that, unlike its clone, it “does NOT deal with retail clients and does NOT arrange or deal in any shares on behalf of retail clients”.

Fraudsters like these often use the same or a similar name to an authorised firm, without having obtained permissions from the regulator, thereby deceiving investors.

Firm loses permissions over fraud suspicions

Furthermore, the FCA said that it has stopped SK8 Financial Services from conducting regulated business as of 10 December 2013. The firms permissions were revoked after concerns arose that former or current customers of SK8 and its director Geoffrey Fincher, who paid cash or cheques directly to Fincher to be invested, may not have valid investments.

As such, the regulator advised customers to check their investment documents.

“If customers have concerns over any investments, or do not have any documents relating to specific investments, they are advised to contact the investment companies where they believe their investments are held,” the FCA said in a statement.

Additionally, the FCA warned that the London-based firms McQueen and Bond, Mc Queen and Bond, Mc Queen and Bond Wealth Management are providing financial services and products and targeting investors in the UK, without authorisation.

As always, investors who give money to an unauthorised firm, will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.