The Financial Conduct Authority has imposed restrictions on independent financial adviser Advantage Wealth Management Ltd after concerns it was not being managed in a “sound and prudent manner”.
As a result of the restrictions, AWM must not dispose of any assets or conduct any regulated activities without the written consent of the FCA.
The authority said the firm can no longer act as an independent financial adviser or provide advice and therefore suggested that AWM’s customers should seek a new financial adviser.
This action followed a supervisory notice that was issued to AWM on December 22 2025, in which the authority expressed a number of concerns about the firm.
These concerns included AWM’s treatment of customers, its appropriate financial resources, and its level of cooperation with the authority.
Supervisory notice
The notice was issued for a number of reasons, including AWM failing to respond to requests for information, and concerns about the circumstances in which several clients had their investments moved into cash holdings.
The FCA also said it was not satisfied the firm was being conducted in a sound and prudent manner or that AWM had appropriate financial resources to meet its liabilities for losses which may have been suffered by customers.
The regulator was also concerned the firm did not have the appropriate non-financial resources due to the fact that the director stopped responding to requests for information.
Due to these concerns, the FCA said that the firm could not carry out regulated activities for which it has Part 4A permission without written consent from the authority.
It also said that the firm should secure and preserve all records and information relating to its business, including payment, electronic money and digital services.
“Given that there is a significant risk of loss to clients, there is a risk that the firm’s potential liabilities are likely to exceed its cash position,” it said.
“The firm has not satisfied the authority that it has sufficient resources to meet its potential liabilities to current or future complainants.”
The FCA therefore stated that the firm should impose its specified requirements with immediate effect given the seriousness of the risks and the need to protect consumers.
tom.dunstan@ft.com
