Investment firm to wind up as FCA acts over £1.5m client money shortfall

Investment group Hartmann Capital is set to wind up after the FCA prohibited it from carrying out regulated business due to a £1.5m client money shortfall.

The firm alerted the FCA to the shortfall last month, as well as a separate £1.2m shortfall in regulatory capital, and proposed using client money as a potential way to fund debt payments ahead of the wind-up. In response, the FCA has prevented Hartmann from releasing client money, on concerns this may increase the shortfall. "In the FCA's view there is no reasonable prospect of the firm being able to make good the client money shortfall and in addition there is a real risk that Hartmann may, whether or not in good faith, permit client money to be released from its client bank account...