Organic Investment Management made the decision after an FCA visit, but the reason is not publicly known at this time
Discretionary Fund Management firm, Organic Investment Management has informed independent financial advisers that it is not currently accepting new business into any of its risk-based investment portfolios.
The decision, announced to IFAs via an email in June and seen by Citywire, was taken after the Financial Conduct Authority (UK financial services regulator) visited the firm one Friday. The email told how the firm “will no longer be investing new money into our[their] model portfolios” and asked IFAs who had clients heading their way to “arrange for any pipeline clients to be advised into alternative investments”.
Continued Management of DFM portfolios
The email also stated that existing clients would continue to have their existing investments managed through their model portfolios.
DFMs scaling back
The announcement from Organic Investment Management is another in a recent flurry of DFM firms changing the way they operate, including Greyfriars Asset Management, Beaufort Securities which has agreed with the FCA on restrictions now effecting the business, and Strand Capital, which has recently entered special administration.
You can find out more about DFMs, SIPPs and how the FCA has concerns about “third generation scams” here.