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.

Read this next

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

<