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Cash Plus to challenge FSC in court

Published:Wednesday | January 23, 2008 | 11:06 AM

Lawyers representing Cash Plus Limited are expected in court to challenge the authority of the Financial Services Commission (FSC) to regulate the investment club, today.



Cash Plus is contending that the FSC has no authority to regulate it, as it is not dealing in securities.



Last month the FSC issued cease and desist orders on the investment club and its principals, directors, officers and employees.



The FSC said its investigation revealed that Cash Plus was operating in breach of the Securities Act, which prevents an entity from conducting securities business without being licenced as a securities dealer.



Last Wednesday, the court granted a stay of the cease and desist order until a ruling is made in the case to be heard today. The stay was granted under stringent conditions.



These included a restriction against Cash Plus from taking on new customers.



Cash Plus was also ordered to provide the names of all its customers to the court under a confidential seal.