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D2C platform Selftrade reviews client data in money laundering checks

Execution-only platform Selftrade has threatened to suspend client accounts unless individuals fill in de- tails about the sources of their wealth.

A letter sent last week requested clients to fill out financial details to “reconfirm and refresh their proof of identity” and said Selftrade was carrying out the review to “ensure we fully comply with all our regulatory obligations”.

It added clients who do not complete the form could see their accounts suspended.

A Selftrade spokeswoman says: “Selftrade is currently updating its customer records. As part of this process and in line with regulatory requirements, we are requesting our customers provide a range of information and documentation that may include proof of identity and residential address and details of the source of their wealth and funds. 

“Selftrade, like other financial services businesses, is required by regulators to comply with a wide range of anti-money-laundering laws, regulations, best practice guidelines and policies.  All information and documentation collected will be used solely for the purpose of meeting those regulatory requirements and will not be used for any other purpose.”

In January Selftrade axed its status as a bank after two years, reducing its responsibilities under the Financial Services Compensation Scheme.

The move took effect from March and means Selftrade no longer holds deposit-taking permissions and instead outsources this to other banks.

In December, the firm’s parent Boursorama wrote down the value of the business by around €42m (£35.1m) because of regulatory demands and delayed IT migration.

Last January, the firm suspended taking on new customers on its platform after voluntarily varying its permissions following discussions with the regulator.

ADVISER VIEW: Dennis Hall

Hall-Dennis-Yellowtail-2013 700 x 450.jpg
Yellowtail Financial Planning managing director Dennis Hall

Selftrade has perhaps not been as aggressive as others in its record keeping. The timing of this seems strange, as you would think firms would gather this information when people opened their account.

Dennis Hall is managing director at Yellowtail Financial Planning

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