Direct Trading Technologies Faces FCA Restrictions on Regulated Activities

The UK's Financial Conduct Authority (FCA) announced a restriction against Direct Trading Technologies (DTT) on March 27. The restriction prevents the firm from carrying out regulated activities and accessing its assets, as the regulator believes that DTT is failing to meet the standard of an authorized firm.

The restriction banned the broker from carrying out any regulated business and prevented DTT from reducing the value of assets without the regulator's consent.

In an announcement published on May 2, the FCA advised related investors. The regulator said DTTs banned from providing regulated services, including trading, must close all positions and store investor funds separately.

In January, the FCA was informed by the Auditors that DTT's 2023 financial statements may have been fabricated.

_{Direct Trading Technologies's regulatory detail in the FCA registry}

The FCA was concerned that DTT lacked systems and controls to prevent financial crime and that it was insufficient to detect and prevent its staff from falsifying the company's audit documents. It was reported that an employee of the firm was suspected of falsifying documents used to make large payments.

The regulator also found that DTT had poor governance and oversight to identify, manage, monitor, and report on the risks to which the firm was, or was likely to be, exposed. In the First Supervisory Notice issued by the FCA, the regulator said that DTT's accounting irregularities had led to a significant shortfall within the firm's client money accounts.

FCA further stated that DTT had failed to cooperate with the regulator as the information provided to the company's auditors appeared to be inconsistent with the information it separately provided to the FCA.

Forex and CFDs broker Direct Trading Technologies UK Ltd is a British branch of Global DTT licensed by the FCA in the UK since September 2018 under reference number 795892.