SFA tells Derby broker to cease investment business
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.KEDLESTON Stockbrokers, a small Derby firm, has been ordered to cease its investment business after it repeatedly made unsuitable and inappropriate investments for its clients.
The Securities and Futures Authority, the stockbrokers' regulator, said Kedleston had placed its own interests above those of its customers. The firm no longer has sufficient capital to meet the SFA's financial resources requirements.
The SFA said it was not satisfied that Kedleston 'has sufficient staff with the necessary training and experience to carry on the business'.
None the less, the regulator is allowing Kedleston to execute transactions to close customers' positions, to settle outstanding share trades, and to return assets to its customers.
An SFA spokesman said: 'In some cases, the investment (made by Kedleston) fell outside the scope of the instructions that discretionary clients had given to the stockbroker.' In one instance, the firm committed more money than the client had available.
Only about 10 investors were affected. The SFA is still continuing its investigation and does not know how much the investors may have lost.
Roger Oliffe, Kedleston's sole remaining director, said he hoped to make a statement on Monday. It is believed that Kedleston is owned by Mr Oliffe and other employees.
The SFA spokesman said intervention orders, such as that against Kedleston, did not always result in expulsion from the SFA.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments