The FCA has issued a First Supervisory Notice imposing restrictions on the operations of London Court Limited due to deficiencies identified in its 'My Investment Hub' platform.

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As per the notice dated August 22, 2023, London Court Limited is now barred from engaging in regulated activities for new clients or investments. This includes refraining from offering new investments on its platform or any other investment platform, managing bond administration or ISA Manager responsibilities for new investments, or facilitating new funds into existing investments listed on the platform. However, it is allowed to continue existing bond administration or ISA Manager activities solely for investments made prior to the enforcement of these requirements.

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The FCA's decision stems from significant concerns regarding London Court Limited's lack of adequate systems and controls to identify target markets for investments, assess the compatibility of investments with client needs, and ensure the distribution of investments is in the clients' best interests. Additionally, there are concerns about the sufficiency of the firm's non-financial resources to comply with regulatory obligations.

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This notice holds broader significance for platform operators, highlighting the necessity of thorough due diligence on investments offered, as outlined in PROD 3. London Court Limited failed to conduct due diligence on its offered investments and provided insufficient, inaccurate, or potentially misleading materials to investors. The FCA also emphasises the importance of effectively responding to regulatory intervention, citing previous concerns raised with London Court Limited regarding its approach to financial promotions.

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For assistance with due diligence on investments, including for SIPP operators and platform providers, The Compliance Platform offers extensive experience and guidance and also access to expert legal support through our Partnership service.

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If assistance is needed, please feel free to reach out.

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