FCA Bans CFD Broker Direct Trading Technologies, Citing "Falsified" Audit Records

The Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) revoked Direct Trading Technologies UK Ltd (DTT)'s 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 a 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.

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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 Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term 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.”

Following the restrictions, DTT issued guidelines to its clients, saying that it will not dispose of or move any assets, including client funds, without the regulator’s explicit permission.

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.