View more on these topics

Land banking fraud case costs FCA £2.5m

A land banking fraud case brought by the FCA which has been frustrated by the cuts to legal aid has cost the regulator £2.5m.

In May, a judge threw out the case after the five defendants failed to get legal representation. Later that month, the decision was overturned by the Court of Appeal.

A Freedom of Information request published by the FCA shows the case has so far cost the regulator £2.5m, including £23,800 for external counsel for bringing the appeal.

In April 2013 the FCA charged eight men with land banking fraud and carrying out a regulated activity without authorisation. The case was classified as a “very high-cost case”. The Government has introduced a 30 per cent reduction to lawyer fees for VHCCs as part of legal aid cuts.

The defendants will now seek representation again.

A separate FoI request published by the FCA shows a big increase in customer data losses. In 2012, the regulator was notified of three incidents where firms had lost data or had it stolen. In 2013, it was notified of 13 incidents.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com