The UK Financial Services Compensation Scheme continues its investigation into the activities of DMT.
The UK Financial Services Compensation Scheme (FSCS) today provided an update to clients of Direct Market Touch, a firm that offered stockbroking/trading opportunities to investors, concentrating in the Plus/ISDX/Nex Exchange markets.
FSCS says its investigations into DMT are continuing. The process has now moved to FSCS’s legal team who are looking at DMT’s activities to identify any specific regulatory breaches. The Scheme will provide a further update in due course.
FSCS explains that customers have made various allegations against this firm. These allegations centre on its operating methods and include:
- anomalies in trading and reporting,
- concerns on the suitability of risk profiling.
Also, DMT appears to have placed a high concentration of transactions into a small number of companies with the same directors. This has raised potential concerns around conflicts of interest.
FSCS is currently accepting claims against DMT, although these have not yet been passed to the claims teams for assessment. The body needs to establish whether there are valid claims against DMT first.