The Financial Services Commission (FSC) has confirmed it is in dialogue with Cash Plus, an investment entity which it said was in breach of the country's financial regulations, but advised Wednesday that it had not ruled out legal action against the company.

FSC executive director Bryan Wynter said his agency could present files to the Director of Public Prosecutions to take action at anytime.

Wynter did not disclose the nature of the talks it was having with Cash Plus, but said it would not prevent the regulator from placing the company before the court, if necessary.

Cash Plus lawyer Harold Brady redirected a request for comment to attorney K.D. Knight. Knight did not return our call up to press time.

The regulator has suggested in the past that the scheme which Cash Plus operates, which gives returns of up to 10 per cent per month on investments, is tantamount to investment advice and trading.

The company, run by self-described ex-mortgage banker, Carlos Hill, has conferred that it borrows from clients and pays them a return on those funds. Cash Plus is also a heavy investor in real estate, shipping, hotels, and a range of sectors.

Wynter said his agency had not up to this point issued a cease and desist order on the management. He also told journalists that initiating a lawsuit would prove difficult as information on the company and its principals were difficult to obtain.

The FSC in the past has denied approval for a security Cash Plus had attempted to register for trading. Neither the regulator nor Cash Plus would give details on the security and the reasons for the refusal.

The FSC boss maintained Wednesday, however, that he was more interested in having Cash Plus comply with securities legislation than in initiating legal proceedings.

Two weeks ago, the FSC issued an advisory warning that Cash Plus was not a licensed investment dealer and as such was not authorised to offer investment products to the public.

It was the first notice issued about the company, though Wynter has warned in comments to the media that the public should be wary of such high-risk high-return schemes.

But Cash Plus fired back, dismissing the FSC's claim and threatened legal action against the regulatory agency.

The company said that in the interest of transparency, it was heading to the Supreme Court to obtain a declaration on its status.

john.myers@gleanerjm.com