Direct Market Touch Limited
Direct Market Touch Limited (FRN 490521, Company No. 06731780) was a London-based investment firm regulated by the FCA. The firm was declared in default by the FSCS in late 2020 after an investigation identified serious regulatory breaches in the way it managed client investments.
Investigators identified a pattern of concern at Direct Market Touch: the firm had placed a high concentration of transactions into a small number of companies whose directors were connected to each other. This raised significant concerns about conflicts of interest and whether clients’ money was being managed independently and in their best interests. Those concerns were brought to the attention of the FSCS by independent investigators who had been examining the firm since 2019.
The FSCS legal team reviewed the firm’s activities thoroughly before concluding its investigation in November 2020 and declaring the firm in default. Clients who suffered losses as a result of Direct Market Touch’s conduct may be eligible for FSCS compensation.
Issues / Why You May Have a Claim
Investment managers have a fundamental obligation to manage client money independently, in a way that is free from undisclosed conflicts of interest. Where investments are concentrated into companies with connected directors, and where clients are not told about those connections, this represents a serious breach of the trust placed in a regulated firm. Former clients of Direct Market Touch who lost money may have a valid claim.
