The firm, based in the iconic Leadenhall building in the City of London, has been ordered to halt Part 4A regulated business (most retail finance business) without express FCA approval for individual tasks.

The FCA said the firm has so far failed to pay two Financial Ombudsman wards to clients and has not provided accounts and other information required.

The firm, and its appointed representatives, must immediately cease carrying on all regulated activities for which it has a Part 4A permission other than where it has the express written consent of the FCA.

The firm has been told notify in writing all its clients/investors of the terms and effect of these requirements.

The firm, incorporated in 1992, was involved in a variety of investment sectors including corporate finance, fund management and managing investments for clients. It had permission to advise on investments (except on Pension Transfers and Pension Opt Outs), deal investments and run collective investments.

The FCA's First Supervisory Notice containing the restrictions was issued on 24 June but has only been made public this week by the FCA.

The watchdog says it has imposed restrictions because its has “serious concerns” the firm is not capable of being “effectively supervised” by the authority.

The regulator said the firm has repeatedly failed to report all transactions it has executed since 1 April, has not submitted audited accounts for the year ended 31 March 2023, and failed to notify the authority of a notice by the Registrar of Companies on 28 May 2024 to strike it off the Register of Companies.

There are two awards by the Financial Ombudsman Service for redress due to complaints made about the firm. The firm, which has the right to appeal the FCA Notice, is believed to be up for sale and says any sale proceeds will be used to pay the FOS complainants.

The firm has two directors, who hold between them the SMF 3, SMF 16 and SMF 17 functions. The firm is also a principal for two appointed reps. The watchdog says it believes the firm is taking steps to terminate the contractual relationships between it and the two appointed reps.

The firm provided corporate finance advice, fund management and execution only trading services and was an adviser to one company quoted on the AQUIS Stock Exchange. The FCA said it noted that the firm’s “fund management” appeared to be a service that assists clients in trading non-mainstream assets within a fund structure.

The firm reported corporate finance revenues of £8,000, funds under management of £1,577,000 and gross commission and brokerage revenues of £101,000 for the period 1 January 2024 to 31 March 2024.

It is understood that the Fund was wound up in 2018 with no assets. Two investors in the fund subsequently made complaints to the FOS and in April 2023, the FOS upheld the two complaints against the firm. The firm was then required to pay redress and compensation to the complainants as a result of the FOS awards.