FCA Bans Dolfin Financial (UK) From Regulated Activities

Tom Burroughes Group Editor London 16 March 2021

FCA Bans Dolfin Financial (UK) From Regulated Activities

The statement, issued on 12 March, said the restrictions were imposed because of concerns about how the firm carries out its business, including the area of managing Tier 1 investor visas, sometimes known in the trade as "golden visas."

The UK’s main financial regulator has restricted wealth management house Dolfin Financial (UK) from carrying out regulated activities because it is concerned about how the firm “conducts its business”, including its work with the UK’s “golden visa” regime.

The restrictions will stop Dolfin from carrying on any regulated activity and prevent it from reducing the value of its assets, or any of the client money or custody assets it holds, without the consent of the FCA, the regulator said on Friday.

This news service has contacted Dolfin about the matter and may update in due course.

“The FCA has identified a number of serious concerns around the way that Dolfin operates its business, including the firm’s Tier 1 investor visa business activities and financial crime controls,” the FCA’s statement said. “The FCA has been working with Dolfin while it took steps to try and address these concerns, including imposing voluntary restrictions on its regulated activities on 24 December 2019, and commissioning a Skilled Persons Review.”

“However, following the conclusion of the Skilled Persons Review and developments that have taken place since, 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,” it continued.

Dolfin still holds clients’ money and custody assets and will continue to do so in accordance with the FCA rules. Clients cannot trade, withdraw, transfer, or otherwise use custody assets or client monies held by Dolfin while the restrictions are in place, without the consent of the FCA.

The regulator said that in some cases, clients’ custody assets and/or client money may be held at a third party on their behalf.

“It is currently uncertain how long it will be necessary for the restrictions to remain in force as this is subject to the FCA’s concerns being addressed by the firm,” it added.

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