Football Index was launched in October 2015 as an innovative football trading platform, where customers could buy three-year bets on footballers. Winnings, referred to as “Dividends,” were based on players’ media popularity and, from 2017, their on-pitch performance. The platform operated in a way that mimicked financial markets, using terms such as “Initial Public Offerings” (IPOs) for new player releases and allowing traders to sell their contracts to other users or back to Football Index at a reduced price.

Despite the financial services-oriented structure, Football Index was not regulated by the Financial Conduct Authority (FCA). Instead, it secured a licence from the Gambling Commission (GC), which failed to conduct adequate due diligence on the company’s financial strength and promotional claims. The regulatory oversight gap became apparent in 2019 when the GC realized the complexity of what it had licensed, recognizing that the product might fall outside its remit. However, rather than acting swiftly, the GC and FCA engaged in prolonged discussions about regulatory responsibility without taking decisive action to protect consumers.

By September 2019, the FCA’s General Counsel, Sean Martin, had identified that some or all of Football Index’s operations could constitute a regulated investment under Article 85 of the Financial Services and Markets Act 2000 (FSMA). Despite this, no regulatory intervention took place. Consumers, unaware of the platform’s true nature, were misled by aggressive marketing campaigns that promised guaranteed returns and financial security. In reality, Football Index was operating as a Ponzi scheme, using new deposits to fund increasing dividend payouts and extravagant marketing expenses.

During the final year before its collapse, external legal advice obtained by the GC classified Football Index as a Contract for Difference (CFD). The FCA sought similar legal guidance only after the platform collapsed on March 11, 2021. In August 2023, the FCA wrote to the Football Index Action Group, asserting that Football Index fell under the category of spread betting, which is regulated by the FCA as a sub-section of CFDs. This contradicted previous indications and further demonstrated the failure of both regulators to take responsibility in a timely manner.

Since the platform’s collapse, the Football Index Action Group has sought redress for affected victims. Despite the FCA having raised approximately £2 billion in regulatory fines and settlements since October 2015, no compensation has been allocated to those financially harmed by the regulatory failures in overseeing Football Index. The case highlights systemic regulatory shortcomings and calls for greater accountability in consumer protection within the financial and gambling sectors.

David Hammel, who runs the Football Index Action Group, will be the key speaker , shedding light on regulatory failures and advocating for consumer redress.