ARTICLE
31 January 2020

The Financial Conduct Authority Has Brought Proceedings Against Companies Running Amateur Football Leagues, Alleging Unauthorised Financial Activity

RR
Rahman Ravelli Solicitors

Contributor

Rahman Ravelli is known for its sophisticated, bespoke and robust representation of corporates, senior business executives and professionals in national and international matters.
It is one of the fastest-growing and most highly-regarded, market-leading legal practices in its field. This is due to its achievements in criminal and regulatory investigations and large-scale commercial disputes involving corporate wrongdoing and multi-jurisdictional enforcement, and its asset recovery, internal investigations and compliance expertise.
The firm’s global reach, experienced litigators and network of trusted partner firms ensure it can address legal matters for clients anywhere in the world. It combines astute business intelligence and shrewd legal expertise with proactive, creative strategies to secure the best possible outcome for all its clients.
Rahman Ravelli’s achievements in certain cases have even helped shape the law. It is regularly engaged by other law firms to provide independent advice.

The Financial Conduct Authority (FCA) has commenced civil proceedings against individuals and firms running football leagues for alleged unauthorised financial activity.
United Kingdom Criminal Law

Syedur Rahman of business crime solicitors Rahman Ravelli analyses the FCA's line of attack.

The Financial Conduct Authority (FCA) has commenced civil proceedings against individuals and firms running football leagues for alleged unauthorised financial activity.

The FCA brought proceedings in the High Court against Bright Management Solution Limited as well as Soccer League International Limited, Soccer League UK Limited and senior individuals at these firms. It alleges that unauthorised deposit taking was carried out, with money accepted from the public for projects including forex trading and crypto-assets.

The FCA alleges that the firms Soccer League International and Soccer League UK – as well as four men who held senior positions at the companies - were each 'knowingly concerned' in Bright Management Solution's contraventions.

An interim injunction has been secured by the FCA, stopping these activities from continuing and freezing up to £1.3M pending a further hearing. A future hearing will involve the FCA seeking to keep the freezing order in place until further order of the court or the end of the action.

The FCA is seeking a declaration from the court that the defendants' actions amounted to unauthorised deposit taking. It also wants an order preventing them from carrying out this activity in the future and a restitution order to return frozen funds to consumers who were affected by these alleged breaches.

While the defendants will need to establish whether unauthorised deposits were accepted, it is interesting to note that the FCA highlighted crypto-assets in this case. At the moment, there is no legislation to identify crypto-assets as "property" in the traditional sense, other than in the guidance laid out by the UK Jurisdiction Taskforce. The defendants will also need to scrutinise what the FCA deemed unauthorised and provide explanations in respect of this.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More