The 1,600 clients of a discretionary investment management (DFM) firm that was suspended by the Financial Conduct Authority (FCA) at the start of December have moved to become clients of PJ Milton and Co, a Devon-based advice firm.
Organic Investment Management, which is based in London, has placed a notice on its website stating that, as of December 7, the firm is forbidden by the regulator from engaging in any regulated activities, including investment management, without the prior written consent of the regulator.
A notice on the FCA's website said the firm continues to be an authorised entity, though it is suspended.
There are 1,600 clients who used the investment management service, equating to £55m of assets.
Those clients will now move to PJ Milton & Co in Devon.
Philip Milton, managing director of PJ Milton & Co, said he had not been specifically looking to increase the number of investment management clients he has but taking on these clients may lead to his firm expanding the range of services it offers, and the number of staff his firm employs.
He said: "At this juncture we shall only be managing the extra, segregated funds with no responsibility to advise the individuals involved on their personal financial planning.
"Our sophisticated investment and administration systems, created for our own unique requirements, are perfectly structured to accept the new money and assets without significant disruption to staff, clients nor the firm's underlying investment strategies."