Execution-only platform Selftrade has stopped taking on new customers and says it is voluntarily varying its permissions following discussions with the FSA.
The firm, which has more than 200,000 accounts and more than £4bn of assets under administration, suspended the acquisition of new customers on 15 January and is now reviewing its processes.
Selftrade says existing customers are unaffected by the move, and can continue to place new business with the firm.
A Selftrade spokeswoman says: “Following discussions with the FSA in December, Selftrade has raised a voluntary variation of permission with the regulator. The board of Selftrade has resolved to undertake a review to enhance some of the firm’s processes, which it is committed to completing as quickly as possible.
“In order to devote the resource required to this review, Selftrade is temporarily suspending the acquisition of any new customers. Existing customers are unaffected by the VVOP and can continue to place new business with the firm.
“Selftrade plans to enhance its processes and wishes to stress that no client money has been lost nor has there been any financial loss to the firm resulting from its previous processes.”
Selftrade is the execution broker for equity trading on Standard Life Wrap but says this arrangement is not affected.
The spokeswoman adds: “None of the processes we are looking at relate to the custody and dealing arrangements we provide Standard Life so have no impact on either its existing or new customers for advisers using its platform.”
Finance and Technology Research Centre director Ian McKenna says: “People have very long memories of these things and unfortunately it will be brought up for some time.
“The most important thing, however, is to get it fixed and be open and honest about what the problem is.”