FCA warns investors against Braxton Knight, confirms carrying on regulated activities without authorisation

On 30th January we reviewed the investment firm Braxton Knight and concluded that its offer of unregulated securities paying a fixed return of up to 80% per annum with “capital risk less than 5%” constituted a Ponzi scheme, and also that the firm was offering both financial promotions and financial advice without authorisation.

The day after we went to press, the Financial Conduct Authority issued a warning against investing in Braxton Knight, and Braxton Knight now appears on the FCA Register as an unauthorised firm, with a note that the FCA “strongly suggest you avoid dealing with unauthorised firms like this”.

Carrying on a regulated activity without advice is punishable by a sentence of up to two years’ in prison and/or a fine. Operating a Ponzi scheme is fraud, which carries further penalties. The FCA has not disclosed whether any criminal investigations are ongoing, but we would not expect them to.

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