The Financial Conduct Authority (FCA) stripped Direct
Trading Technologies UK Ltd (DTT) of its regulatory permissions and froze its
access to assets following concerns over financial controls and transparency.
The FCA’s intervention, effective from 27 March 2025, bans
DTT from offering any regulated financial services in the UK and demands the
closure of all open trading positions.
“On 27 March 2025, we placed restrictions on Direct Trading
Technologies (DTT), preventing it from carrying on any regulated activities and
restricting access to its assets,” the regulator mentioned in the notice today
(Friday).
Besides that, the firm must also ring-fence client funds.
These actions followed a formal audit process that uncovered what the auditors
reasonably believed to be fabricated financial documents.
Allegations of Falsified Audit Records
According to the FCA’s notice, DTT’s problems became
impossible to ignore when, during a January 2025 audit, its financial
statements appeared to include falsified documentation.
This documentation was allegedly used to justify a
substantial payment, raising immediate concerns about the firm’s internal
controls and financial crime defenses.
Beyond the audit issue, regulators found systemic governance
failures. DTT’s leadership failed to establish proper oversight over risk and
compliance processes, an especially critical flaw for a firm operating a
matched principal broker model.
The FCA determined that the company lacked adequate
administrative procedures and internal controls, noting that its systems failed
to detect or prevent a member of staff from allegedly falsifying key audit
documentation.
The regulator also cited DTT’s poor cooperation during the
investigation. The firm failed to provide consistent information to both
auditors and the FCA.
Immediate Client Impact and Regulatory Measures
As of 28 March 2025, the FCA ordered that DTT may not deal
with or move any of its assets without explicit regulatory approval. By early
April, the firm must complete the return of client funds and close all trading
positions.
“Due to the restrictions put in place, the firm is required
to ensure that all open trading positions have been closed and investor money
is set aside for customers. The firm can no longer offer regulated services,
including trading.”
DTT is part of a broader international group operating out
of Lebanon and Dubai, with additional licenses in Lithuania, Vanuatu, and
Panama. Its UK entity has served primarily professional clients since receiving
FCA authorization in 2018.
As the firm is no longer permitted to conduct any trading or
regulated activities in the UK, the regulator now wants clients to ensure they
receive appropriate updates regarding their funds and account closures.
The Financial Conduct Authority (FCA) stripped Direct
Trading Technologies UK Ltd (DTT) of its regulatory permissions and froze its
access to assets following concerns over financial controls and transparency.
The FCA’s intervention, effective from 27 March 2025, bans
DTT from offering any regulated financial services in the UK and demands the
closure of all open trading positions.
“On 27 March 2025, we placed restrictions on Direct Trading
Technologies (DTT), preventing it from carrying on any regulated activities and
restricting access to its assets,” the regulator mentioned in the notice today
(Friday).
Besides that, the firm must also ring-fence client funds.
These actions followed a formal audit process that uncovered what the auditors
reasonably believed to be fabricated financial documents.
Allegations of Falsified Audit Records
According to the FCA’s notice, DTT’s problems became
impossible to ignore when, during a January 2025 audit, its financial
statements appeared to include falsified documentation.
This documentation was allegedly used to justify a
substantial payment, raising immediate concerns about the firm’s internal
controls and financial crime defenses.
Beyond the audit issue, regulators found systemic governance
failures. DTT’s leadership failed to establish proper oversight over risk and
compliance processes, an especially critical flaw for a firm operating a
matched principal broker model.
The FCA determined that the company lacked adequate
administrative procedures and internal controls, noting that its systems failed
to detect or prevent a member of staff from allegedly falsifying key audit
documentation.
The regulator also cited DTT’s poor cooperation during the
investigation. The firm failed to provide consistent information to both
auditors and the FCA.
Immediate Client Impact and Regulatory Measures
As of 28 March 2025, the FCA ordered that DTT may not deal
with or move any of its assets without explicit regulatory approval. By early
April, the firm must complete the return of client funds and close all trading
positions.
“Due to the restrictions put in place, the firm is required
to ensure that all open trading positions have been closed and investor money
is set aside for customers. The firm can no longer offer regulated services,
including trading.”
DTT is part of a broader international group operating out
of Lebanon and Dubai, with additional licenses in Lithuania, Vanuatu, and
Panama. Its UK entity has served primarily professional clients since receiving
FCA authorization in 2018.
As the firm is no longer permitted to conduct any trading or
regulated activities in the UK, the regulator now wants clients to ensure they
receive appropriate updates regarding their funds and account closures.
This post is originally published on FINANCEMAGNATES.
