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Man behind failed £8.5m spread betting scheme gets ban


The boss of a failed £8.5m spread betting scheme has been banned from managing any limited company for 12 years.

Stuart Mudge “guaranteed” investors 15 per cent quarterly returns as he accumulated £8.5m for spread bets through his Churchgate Trading Syndicate between June 2009 and February 2012.

Mudge admitted he had broken the law by operating the scheme without FCA permission in 2013, and a High Court ordered to him pay back over £7m to investors, to be distributed through the FCA.

He could not pay this money, however, and was declared bankrupt.

After further investigation by the Insolvency Service, Cardiff County Court has now handed down a 12 year ban on Mudge that he “cannot promote, manage, or be a director of a limited company until February 2029”.

FCA executive director of enforcement and market oversight Mark Steward says: “Investors are often lured by false promises of high returns without the high risks being disclosed to them.  Spread betting on securities or currencies is typically risky and investors in Mr Mudge’s scheme ended up losing substantial amounts of money.

“We urge investors to be vigilant and wary of anyone promising high or guaranteed returns – these are often the hallmarks of a scam, even if the trader is someone you know.  And check with the FCA Register to ensure the person is authorised to be advising or trading on behalf of customers.”

In December, the FCA said it was looking to impose stricter rules for firms selling risky spread bets and rolling spot foreign exchange products.

‘Advisory’ firms in the contracts for difference space were causing concerns at the regulator over unsuitable advice being given and high commissions.


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FCA takes action on ‘advisory firms’ spread betting sales

The FCA is looking to impose stricter rules for firms selling risky spread bets and rolling spot foreign exchange products. The regulator said it had concerns about unsuitable advice being given by intermediaries operating in the ‘contracts for difference’ space, including high commissions, and was doing further supervision of these ‘advisory’ firms. The FCA says: […]

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FCA fines spread betting bosses for hiding cash shortfall

The FCA has fined two of the bosses behind a failed spread betting business for helping hide a more than £15m cash shortfall from investors. The regulator has also imposed a permanent ban on both individuals from engaging in any regulated activity. Worldspreads Limited collapsed in March 2012. Its holding company had listed on Aim five […]


Target practice: The FCA’s warning shot on platforms and unsuitable advice

The FCA has sent a strong signal to the retail investment market that it intends to stamp out unsuitable advice and improve competition in the platform market. In a raft of documents this week, the regulator published its business plan for 2017/18, its house views on sectors including retail investments and pensions, its new “mission” document, […]


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