Context
Following a Supervisory Notice issued on 25 March 2025, the FCA has placed restrictions on Direct Trading Technologies (DTT) preventing it from carrying out any regulated activities and restricting access to its assets.
Key points to note and next actions
- The FCA has identified that the firm is failing or is likely to fail the standards required of an authorised firm.
- It means the firm must stop offering regulated services including trading. Its trading positions have been closed and investor’s money has been set aside for customers.
The action is due to the FCA noting concerns around the firm’s systems and controls to prevent financial crime. The FCA found that these were not adequate to detect or prevent a member of staff falsifying documents for the firm’s audit. There were ineffective processes to identify, manage, monitor and report the risks it may be exposed to. There were inadequate internal control mechanisms including lacking sound administrative and accounting procedures.
Additionally, and firms should note, information provided by the firm to their auditor was inconsistent with information provided to the FCA. DTT was not open or co-operative with the FCA and did not ensure that information was appropriately disclosed, a clear failure to comply with Principle 11.