FCA orders wealth firm to stop taking new money

Discretionary fund manager (DFM) Greyfriars Asset Management has agreed with the Financial Conduct Authority (FCA) to stop managing new investment money including its Portfolio Six. Our sister publication New Model Adviser revealed that although no reasons are specified, the FCA mentions an offering called Portfolio Six in its note. According to a brochure released by Greyfriars, Portfolio Six is a discretionary managed investment portfolio made up of ‘non-correlated investments’ including corporate bonds. It targeted annual returns of 8-10% per year and had a minimum investment of £10,000 through a Sipp using the Novia platform. A recent update said it has over 1,000 investors with £40 million under management. The note on the FCA register said Greyfriars must: ‘Cease carrying on managing investments regulated activity in respect of new money; this includes cease accepting any new money into the Greyfriars Asset Management Portfolio Six on a permanent basis.’ The FCA also says Greyfriars must ‘suspend accepting any new money into the firm's other discretionary portfolios managed by the firm’. Greyfriars must stop any financial promotion and ‘not in any way dispose of, deal with or diminish the value of any of the firm's assets without the prior consent of the FCA’. A note sent to clients and advisers by Greyfriars said the firm stopped taking new money into Portfolio Six on 15 September. However, Graham Bateman from Greyfriars said this had not been prompted by complaints or the performance of the portfolio. 'There has been no client detriment and no complaints have been received by Greyfriars,' he said. In a statement Greyfriars said: 'Greyfriars Asset Management made the decision in mid-September to cease accepting any new business into the Portfolio Six Service. The Financial Conduct Authority were always aware of our decision and we are in an on-going dialogue with them in managing this. It added: 'We are also reviewing our DFM business and therefore until we have completed this review we will not be accepting any new business within our DFM service.' The full story can be found on New Model Adviser