UK Financial Services Compensation Scheme accepts claims against Direct Market Touch

Maria Nikolova

FSCS is currently accepting claims against DMT, although these have not yet been passed to the claims teams for assessment.

The UK Financial Services Compensation Scheme is now accepting claims against Direct Market Touch (DMT). This becomes clear from the latest update into the matter.

Direct Market Touch offered stockbroking/trading opportunities to investors, concentrating in the Plus/ISDX/Nex Exchange markets.

The Scheme explains that customers have made various allegations against this firm. These allegations centre on its operating methods and include:

  • anomalies in trading and reporting,
  • concerns on the suitability of risk profiling.

Also, DMT appears to have placed a high concentration of transactions into a small number of companies with the same directors. This has raised potential concerns around conflicts of interest.

FSCS is currently accepting claims against DMT, although these have not yet been passed to the claims teams for assessment. Firstly, the body needs to establish whether there are valid claims against DMT. For this to happen FSCS needs to know that DMT owes a civil liability to customers that would enable the firm to be sued in court.

FSCS has been working with Hallbrook Solicitors, who represent a large number of customers and other external bodies. They are set to assist FSCS in getting relevant documents that will help it reach a view on whether there are valid claims against DMT.

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