The Financial Conduct Authority (FCA) stripped Direct Trading Technologies UK Ltd (DTT) of its regulatory permissions and froze its access to assets following concerns over financial controls and transparency.

The FCA’s intervention, effective from 27 March 2025, bans DTT from offering any regulated financial services in the UK and demands the closure of all open trading positions.

“On 27 March 2025, we placed restrictions on Direct Trading Technologies (DTT), preventing it from carrying on any regulated activities and restricting access to its assets,” the regulator mentioned in the notice today (Friday).

Besides that, the firm must also ring-fence client funds. These actions followed a formal audit process that uncovered what the auditors reasonably believed to be fabricated financial documents.

Allegations of Falsified Audit Records

According to the FCA’s notice, DTT’s problems became impossible to ignore when, during a January 2025 audit, its financial statements appeared to include falsified documentation.

This documentation was allegedly used to justify a substantial payment, raising immediate concerns about the firm’s internal controls and financial crime defenses.

Beyond the audit issue, regulators found systemic governance failures. DTT’s leadership failed to establish proper oversight over risk and compliance processes, an especially critical flaw for a firm operating a matched principal broker model.

The FCA determined that the company lacked adequate administrative procedures and internal controls, noting that its systems failed to detect or prevent a member of staff from allegedly falsifying key audit documentation.

The regulator also cited DTT’s poor cooperation during the investigation. The firm failed to provide consistent information to both auditors and the FCA.

Immediate Client Impact and Regulatory Measures

As of 28 March 2025, the FCA ordered that DTT may not deal with or move any of its assets without explicit regulatory approval. By early April, the firm must complete the return of client funds and close all trading positions.

“Due to the restrictions put in place, the firm is required to ensure that all open trading positions have been closed and investor money is set aside for customers. The firm can no longer offer regulated services, including trading.”

DTT is part of a broader international group operating out of Lebanon and Dubai, with additional licenses in Lithuania, Vanuatu, and Panama. Its UK entity has served primarily professional clients since receiving FCA authorization in 2018.

Source: Finance Magnates