Discretionary fund manager (DFM) Organic Investment Management has told IFAs it is not accepting new money into its model portfolios following a visit from the Financial Conduct Authority (FCA).
New Model Adviser® has seen an email sent to advisers earlier this month which states the London-based DFM will no longer accept new money into its five risk-based model portfolios.
‘I am writing to inform you that following a visit from the FCA to our offices on Friday we will no longer be investing new money into our model portfolios. Please can you arrange for any pipeline clients to be advised into alternative investments,’ the message from Organic Investment Management director Darren Courtney-Cook said.
The email added that Organic 'will continue to manage the current assets under management in our Model Portfolios and separately the Organic Funds'.
No further details as to why Organic decided to stop taking new client money were given in the email.
Courtney-Cook did not say why the DFM was not accepting new money, but told New Model Adviser® the firm would keep clients informed.
‘I communicate everything I can to our client base,’ he said. ‘I am working with the FCA and I will communicate with our client base, that is all I can say.’
Organic Investment Management's entry on the FCA register has not been updated to reflect any changes in permission or business terms that resulted from the regulator's visit. The FCA declined to comment.
New Model Adviser® previously revealed other DFMs have voluntarily agreed to stop taking in new client money. Last November a note on the FCA register said Greyfriars Asset Management had agreed to stop taking in new money.