The UK Financial Conduct Authority (FCA) today confirmed the imposition of restrictions on wealth management firm Strowz Ltd.

Strowz Ltd cannot undertake any regulated activity, accept any further client money or move or facilitate the movement of client assets or client money without FCA’s express permission. The firm is also required to keep assets in the business and notify the regulator about any additional bank accounts it intends to open.

This follows serious concerns about Strowz not meeting the minimum requirements that firms need to meet to carry on regulated activities.

The FCA discovered that the firm was handling client money without having adequate systems and controls to prevent client money being mixed with the firm’s own funds. Third-parties were potentially able to access money held by the firm on behalf of its clients. The firm was also acting outside the scope of its regulatory permissions in relation to its client asset arrangements, which could have put clients at significant risk of harm.