The UK Financial Conduct Authority (FCA) has announced that it has taken action against Independently East Ltd, which it supervises. The regulator revoked permission to conduct regulatory activities and blocked the company’s bank accounts. An investor’s deposits were not used to purchase financial products as agreed but were transferred to the personal bank account of one of the directors, i.e., the funds have been misappropriated.
The FCA is concerned that Independently East could be effectively supervised. The regulator has no clue whether the financial institution holds appropriate resources. It has not provided the FCA with the information it requested about its clients, financial position, or a Financial Ombudsman Service award it was due to pay out.
The outstanding Financial Ombudsman Service award is for an upheld complaint by a consumer who paid £70,000 into Independently East’s business account. The consumer understood these funds would be used to invest in a bond.
The FCA has looked into this investment and found no evidence to suggest that the money transferred by the consumer to Independently East was invested in a bond or any other form of investment. It also appears that some of the consumer’s funds were transferred to a personal account of the Director.
Founded in 1996, the company is controlled by Steven East.
