The FCA censured Catalyst Investment Group Limited for misleading investors in their promotion of bonds offered by ARM Asset Backed Securities SA, based in Luxembourg. But for the fact that they are in default, Catalyst would have been fined £450,000.
Catalyst offered the bonds to investment intermediaries and independent financial advisers in the UK, who in turn promoted and sold them to retail investors.
Despite knowing that ARM’s application for a licence from the Luxembourg regulator (the CSSF) to issue the bonds was unresolved, Catalyst continued to accept funds from investors without disclosing ARM’s position, or the risk that ARM could be liquidated if its licence application failed. Alison Moran, Catalyst’s former compliance officer, has been fined £20,000 for her failure to ensure that information was communicated to investors. The FCA have also decided to take action against Timothy Roberts (the CEO) and Andrew Wilkins (a former director), who have referred their cases to the Upper Tribunal.