FCA tells wealth manager to stop regulated activities

FCA tells wealth manager to stop regulated activities

Wealth management firm Dolfin has been forced to cease regulated activities after the regulator imposed restrictions on the company.

In a statement issued on its website, the Financial Conduct Authority said it has “identified a number of serious concerns around the way that Dolfin operates its business".

These included the firm’s tier one investor visa business activities and financial crime controls.

In December 2019, the firm was on the receiving end of FCA restrictions after concerns were raised regarding how it invested funds deposited by tier one visa clients amid apprehensions around potential conflicts of interest.

The FCA said that it has been “working with Dolfin while it took steps to try and address these concerns, including imposing voluntary restrictions on its regulated activities on December 24, 2019, and commissioning a Skilled Persons Review.”

However, the FCA has stated that following the conclusion of the review, the FCA has “determined that it is appropriate in the interests of protecting the integrity of the UK financial system to stop the firm from carrying out regulated activities and has imposed these restrictions".

Dolfin will still hold client money in accordance with FCA rules, meaning clients will not be able to trade, withdraw or transfer monies held by Dolfin while the restrictions are in place, without the consent of the FCA. Likewise, new funds cannot be added.

The FCA said it is “currently uncertain” how long the restriction will remain in force for, as it is subject to the FCA’s concerns being addressed by the firm.