The FSA has moved against two unauthorised ‘advisers’.

The pair are suspected of providing financial advice when not authorised to do so and making misleading statements to investors.

With the assistance of the West Midlands Police, the FSA executed search warrants on three premises in the West Midlands and two individuals were arrested.

Under the Financial Services and Markets Act 2000 (FSMA), persons providing financial advice or arranging deals in investments must be authorised to do so. Contravention is a criminal offence punishable by fine or imprisonment of up to two years.

Also under provisions in FSMA making misleading, false or deceptive statements is an offence punishable by fine or imprisonment of up to seven years.

Nobody has been charged at this stage in connection with the FSA’s ongoing investigation.