- Home
- News
FCA bans DFM from carrying out regulated activity
The FCA has ordered a DFM to cease all regulated activity without express permission from the regulator.
Organic Investments was hit with the ban this month and is now displaying a message on its website which read: “The Financial Conduct Authority (FCA) has decided that from 5pm on 7th December 2018, Organic Investment Management Limited (whether directly or through its agents) must not, without the prior written consent of the FCA, carry on any regulated activities, including managing investments.”
Meanwhile Organic Investments-managed funds with more than £40m of assets have been suspended.
On the firm’s FCA Register page a note read: “With immediate effect, Organic must secure all books and records and preserve information and systems relating to regulated activities carried on by it, and must retain these in a form, and at a location, to be notified to the Authority in writing no later than 5pm on 14 December 2018, such that they can be provided to the Authority, or to a person named by the Authority, promptly on its request.”
The firm was also ordered to notify various interested parties including clients, financial advisers and platforms.
A further notice said the firm must “cease carrying on the managing investments regulated activity in respect of new money; this includes suspend accepting any new money into the Firm's Model Portfolios (the "Portfolios") managed by the Firm.
“For the avoidance of doubt, this requirement does not prohibit the Firm from on-going management of the Portfolios on a day to day basis which includes dealing with redemption requests made by customers.”
It must also “not in any way dispose of, deal with or diminish the value of any of the Firm's assets without the prior consent of the FCA.
“This requirement does not prohibit the Firm from dealing with or disposing of any of its assets in the ordinary and proper course of business.”