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

The Financial Conduct Authority (FCA) stripped DirectTrading Technologies UK Ltd (DTT) of its regulatory permissions and froze itsaccess to assets following concerns over financial controls and transparency. The FCA’s intervention, effective from 27 March 2025, bansDTT from offering any regulated financial services in the UK and demands theclosure 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 andrestricting access to its assets,” the regulator mentioned in the notice today(Friday). Besides that, the firm must also ring-fence client funds.These actions followed a formal audit process that uncovered what the auditorsreasonably believed to be fabricated financial documents. Allegations of Falsified Audit Records According to the FCA’s notice, DTT’s problems becameimpossible to ignore when, during a January 2025 audit, its financialstatements appeared to include falsified documentation. This documentation was allegedly used to justify asubstantial payment, raising immediate concerns about the firm’s internalcontrols and financial crime defenses. Beyond the audit issue, regulators found systemic governancefailures. DTT’s leadership failed to establish proper oversight over risk andcompliance processes, an especially critical flaw for a firm operating amatched principal broker model. The FCA determined that the company lacked adequateadministrative procedures and internal controls, noting that its systems failedto detect or prevent a member of staff from allegedly falsifying key auditdocumentation. The regulator also cited DTT’s poor cooperation during theinvestigation. The firm failed to provide consistent information to bothauditors and the FCA. Immediate Client Impact and Regulatory Measures As of 28 March 2025, the FCA ordered that DTT may not dealwith or move any of its assets without explicit regulatory approval. By earlyApril, the firm must complete the return of client funds and close all tradingpositions. “Due to the restrictions put in place, the firm is requiredto ensure that all open trading positions have been closed and investor moneyis set aside for customers. The firm can no longer offer regulated services,including trading.” DTT is part of a broader international group operating outof Lebanon and Dubai, with additional licenses in Lithuania, Vanuatu, andPanama. Its UK entity has served primarily professional clients since receivingFCA authorization in 2018. The Financial Conduct Authority (FCA) stripped DirectTrading Technologies UK Ltd (DTT) of its regulatory permissions and froze itsaccess to assets following concerns over financial controls and transparency. The FCA’s intervention, effective from 27 March 2025, bansDTT from offering any regulated financial services in the UK and demands theclosure 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 andrestricting access to its assets,” the regulator mentioned in the notice today(Friday). Besides that, the firm must also ring-fence client funds.These actions followed a formal audit process that uncovered what the auditorsreasonably believed to be fabricated financial documents. Allegations of Falsified Audit Records According to the FCA’s notice, DTT’s problems becameimpossible to ignore when, during a January 2025 audit, its financialstatements appeared to include falsified documentation. This documentation was allegedly used to justify asubstantial payment, raising immediate concerns about the firm’s internalcontrols and financial crime defenses. Beyond the audit issue, regulators found systemic governancefailures. DTT’s leadership failed to establish proper oversight over risk andcompliance processes, an especially critical flaw for a firm operating amatched principal broker model. The FCA determined that the company lacked adequateadministrative procedures and internal controls, noting that its systems failedto detect or prevent a member of staff from allegedly falsifying key auditdocumentation. The regulator also cited DTT’s poor cooperation during theinvestigation. The firm failed to provide consistent information to bothauditors and the FCA. Immediate Client Impact and Regulatory Measures As of 28 March 2025, the FCA ordered that DTT may not dealwith or move any of its assets without explicit regulatory approval. By earlyApril, the firm must complete the return of client funds and close all tradingpositions. “Due to the restrictions put in place, the firm is requiredto ensure that all open trading positions have been closed and investor moneyis set aside for customers. The firm can no longer offer regulated services,including trading.” DTT is part of a broader international group operating outof Lebanon and Dubai, with additional licenses in Lithuania, Vanuatu, andPanama. Its UK entity has served primarily professional clients since receivingFCA authorization in 2018.