How much more does it take to rouse sleepy watchdog?

LAST Sunday I reported how the Financial Conduct Authority refused to comment on Incrementum’s activities, even though acting as a stockbroker without permission from the watchdog is an offence carrying a maximum two-year prison sentence and an unlimited fine.

However, a few days ago it explained that it assesses complaints and tip-offs ‘to determine whether serious misconduct is taking place’. It also revealed it has received two reports about Incrementum and Paragon. But it still would not say if it was investigating.

In its recent mission statement the watchdog rightly said: ‘Money invariably acts as a magnet for criminal activity. So effective regulation also creates trust that crime in markets will be prevented and acted against if found.’

Yet its last conviction of anyone accused of running an unauthorised investment firm was in 2015 – despite a remarkable 8,612 tip-offs last year alone. The same statement also highlights how consumers are helped by its public register. ‘The FCA register allows all users to search for information on a firm, individual or financial services product.’

Yet the watchdog is considering running down its register, making it impossible to do checks.

Not that the register is perfect. On August 4, the Insolvency Service announced that currency trader George Popescu has been banned from acting as a company director for 12 years. It said he had sold his firm, Boston Prime, without disclosing the sale and that ‘adjustments’ of $3.33 million (about £2.5 million) to clients’ trading accounts were disputed.

Meanwhile payments totalling $6.2million were made without explanation, much of the cash going to a company connected with Popescu himself.

Yet according to the FCA register, Popescu is still fully authorised as an investment boss without a stain on his character.