The FSA has been granted an interim injunction by the High Court against Stuart Carl Mudge and Anthony John Lewis regarding their involvement in the Churchgate Trading Syndicate.
The regulator says Mudge and Lewis had accepted £5m from UK investors “by promising a guaranteed return generated by trading in spread betting” since September 2010.
According to the regulator, the injunction prevents the pair from accepting further investments into the firm or making any new trades on behalf of Churchgate.
The pair have had assets belonging to them frozen.
In a statement, the regulator says: “The FSA is concerned that Mudge and Lewis may have been engaging in these activities without the necessary approval from the FSA.
“By not having the necessary approval by the FSA, investor funds may have been put at risk as investors may not claim compensation from the Financial Services Compensation Scheme or make a complaint to the Financial Ombudsman Service.”
The regulator is continuing its investigation.