Citadel Trustees

SallyG

http://www.dailymail.co.uk/money/experts/article-2943874/TONY-HETHERINGTON-158-000-carbon-credits-went-smoke.html
"What, then, about Citadel Trustees? Just to be clear, Citadel was never involved in marketing or false claims. Its job was to hold credits safely. But this meant Diffraction could use Citadel’s authorisation by the Financial Conduct Authority (FCA) as part of its sales pitch.
The judge who shut down Diffraction, Registrar Christine Derrett, made the same point. She said that ‘customers were referred to Citadel’s FCA registration, which offers the customer no protection as trading in carbon credits is not a regulated activity.’ "
"Citadel Trustees, based in Camberley, Surrey, has not gone into liquidation. It has simply changed its name to Highpoint Trustees."

Should "referring" like this to lend an air of regulated respectability to unregulated investments be allowed?

Aegis

SallyG wrote: »

http://www.dailymail.co.uk/money/experts/article-2943874/TONY-HETHERINGTON-158-000-carbon-credits-went-smoke.html
"What, then, about Citadel Trustees? Just to be clear, Citadel was never involved in marketing or false claims. Its job was to hold credits safely. But this meant Diffraction could use Citadel’s authorisation by the Financial Conduct Authority (FCA) as part of its sales pitch.
The judge who shut down Diffraction, Registrar Christine Derrett, made the same point. She said that ‘customers were referred to Citadel’s FCA registration, which offers the customer no protection as trading in carbon credits is not a regulated activity.’ "
Should "referring" like this to lend an air of regulated respectability to unregulated investments be allowed?

No, nor is it. Unfortunately it takes longer than we might like for the regulators/police to catch up with all the fraudsters that pull tricks like that.