The Financial Conduct Authority (FCA) has obtained £1.6m from Argento Wealth and its sole director, Daniel Willis, after he promoted two alleged unlawful investment schemes.

Civil proceedings against Willis and the firm had already commenced to recover investor funds linked to the firm’s alleged unlawful activity, with the regulator successfully securing undertakings which froze the assets of both Willis and the company.

The High Court has now approved a consent order with the intention that the money is returned to investors in the schemes.

Argento Wealth is alleged to have unlawfully taken approximately £2.8m as deposits under loan agreements, as well as arranged investments in EMB Fund Limited totalling $9m (£7.1m) which breached the restrictions on financial promotion.

The FCA also alleged that Willis was “knowingly concerned” in this unlawful activity.

Neither the company nor the individual have admitted any of the FCA’s allegations that led to the proceedings, which began in June 2022, although Willis has agreed to pay money to the FCA intended for the eventual distribution to investors.

“Further court hearings are required to decide how and to whom the funds secured in this agreement should be distributed,” a statement from the FCA said. “This process may take a significant amount of time.”

The settlement agreed by the FCA was intended to prevent all of Willis and the firm’s remaining assets from being used up to meet the ongoing legal costs. Without the settlement, there would have been a risk of the remaining investor money being used to fund legal fees, leaving nothing for investors.

Despite the settlement, however, the FCA still suggested that investors face “very significant losses”.

---