The Financial Conduct Authority (FCA) has issued a warning against 27Lytes, a firm operating the website www.27lytes.cfd, stating that it may be providing or promoting financial services or products without the regulator's permission and may be targeting people in the UK.
According to the notice, 27Lytes is not authorised by the FCA. The regulator advises consumers to avoid dealing with the firm and to beware of scams. The warning carries no indication that the firm is impersonating an authorised business.
The FCA notes that almost all firms and individuals must be authorised or registered by the regulator to carry out or promote financial services in the UK.
No Ombudsman or FSCS protection
Consumers who deal with the firm will not have access to the Financial Ombudsman Service if they wish to complain, the FCA said. They will also not be protected by the Financial Services Compensation Scheme (FSCS) if things go wrong, meaning it is unlikely they would get their money back if the firm goes out of business.
The regulator added that some firms give incorrect contact details, including postal addresses, telephone numbers and email addresses, and may change those details over time. They may also supply details belonging to another business or individual so the information appears genuine.
What consumers can do
The FCA said anyone who sent money to a fraudster on or after 7 October 2024 may be covered by protections introduced by the Payment Systems Regulator (PSR).
Consumers can use the FCA Firm Checker to confirm whether a financial firm is authorised and holds permission for the services being offered. Where a financial business makes unexpected contact, the FCA recommends replying only using the contact details listed on the Firm Checker. Anyone who believes they have been approached by an unauthorised firm can call the FCA on 0800 111 6768 or use its contact form.
