Watchdog must act on ‘grey area’ of software

TRADING software is a grey area legally, as the Financial Conduct Authority suggests. But the WiseFX software surely warrants a closer investigation by the regulator.

Investors do not receive the software itself. They buy a licence to use it. WiseFX then tells the investor’s own broker what to buy or sell.

So what is the difference between WiseFX and any authorised broker who carries out discretionary trades on behalf of a client? If there is no difference, then WiseFX and those behind it are quite simply breaking the law.

Operating as a broker or financial adviser without FCA approval is a criminal offence, punishable by up to two years in prison.

Asked if it was aware of the company, and offered a list of the names of people connected to it, the City watchdog did not respond. If it offers a late comment at some stage, it will appear here next Sunday.

Similarly, making false claims in a financial promotion is a criminal offence under the Fraud Act 2006. If the advertising claims made for WiseFX turn out to be either false or misleading, the punishments are even more severe than those available to the FCA.

Has Action Fraud – an offshoot of the City of London Police – spotted WiseFX already? Has it taken The Mail on Sunday reader’s call seriously?

Again, when asked if it was aware of WiseFX, and offered the names of the people involved, Action Fraud failed to respond.

Again, let me give Action Fraud a second chance and say that if it does wake up and burst into action, its reply will be published here next week.