FCA and organised crime unit search homes in Chelmsford and Romford in raids
The Financial Conduct Authority has arrested three individuals as part of an investigation into suspected unlawful financial promotions.
The arrests were announced on 1 May 2026 following an operation carried out jointly with the Eastern Regional Special Operations Unit (ERSOU), which specialises in tackling serious and organised crime. As part of the investigation, officers searched two residential properties in the Chelmsford and Romford areas.
The FCA said all three individuals had been interviewed under caution. No charges have been announced and the investigation remains ongoing. The regulator has not released the identities of those arrested or provided further details about the suspected activity under investigation.
In a statement, the FCA warned consumers to remain cautious when dealing with firms that are not authorised by the regulator. It said advertisements from unauthorised firms can be an indicator of potential scams and may leave consumers without regulatory protections if investments fail. The watchdog urged consumers to use its firm checker and warning list before engaging with financial services providers.
Under the Financial Services and Markets Act 2000, the FCA has powers to investigate and prosecute offences linked to unauthorised financial business activities. The regulator noted that breaches of the general prohibition under sections 19 and 23 of the Act can carry penalties including fines and up to two years’ imprisonment upon conviction.
It also highlighted that communicating unauthorised financial promotions under sections 21 and 25 of the same legislation can lead to similar penalties. In addition, making false or misleading statements under section 89 of the Financial Services Act 2012 can result in fines and prison sentences of up to 10 years.
The FCA said almost all firms offering financial services in the UK are required to be authorised and regulated. The regulator added that companies operating without permission may expose consumers to significantly higher risks of financial harm because they are not covered by protections that apply to regulated firms.
The FCA stated that it could not comment further on the investigation at this stage but confirmed that additional updates would be issued when appropriate. The operation forms part of continuing enforcement activity by the regulator against suspected unauthorised financial activity and misleading promotions targeting consumers.