One of the Jewish community’s best known financial advisers has been arrested, days after he stepped down from a wealth management company amid an investigation by the Financial Conduct Authority (FCA).

Freddy David, the managing director of Hertfordshire-based HBFS, this week relinquished the day-to-day running of the financial services firm, which advertises itself as helping clients “put off the taxman”.

Freddy David

Freddy David

The FCA and City of London Police issued a statement saying they are “are working closely on an investigation concerning the affairs of HBFS Financial Services Limited, a firm regulated by the Financial Conduct Authority.

“A 49 year old male from Borehamwood has been arrested. HBFS’s customers are advised to check the status of any investments made through HBFS and, if they have any concerns, to contact City of London Police email: 3000-17@cityoflondon.pnn.police.uk. The City of London Police and the Financial Conduct Authority investigations are continuing.”

A spokesperson for HBFS told Jewish News: : “HBFS is one of the UK’s largest introducers to the Old Mutual Group, onshore and offshore, and all funds held on both platforms are secure and unaffected by the Investigation.”

After David stepped down, a spokesman for the firm sought to avoid customers’ panic, saying: “We will be cooperating fully with the FCA investigation into this matter. We have assured our clients that all money is completely secure.”

David, a well-known figure in the Jewish community, whose wife Hannah stood as a Conservative Party candidate in Harrow West this year, has been at the Borehamwood-based firm for 17 years, and has led it since 2005. He and his wife are believed to be the joint owners.

The company offers help placing money in offshore “wrappers” for those with £100,000 or more to invest, helping clients legally avoid capital gains tax, corporation tax and income tax. It also offers advice on trusts, ISAs, equities, bonds and pensions, and advises clients how best to legally avoid inheritance tax.