Shares in Jarvis Securities Plc (AIM:JIM) tumbled 15% after the company confirmed it is now trading below current market expectations.
The issue for the stockbroker would appear to be Jarvis Investment Management, where it has been told by the watchdog to appoint what’s called a Skilled Person to review the regulatory controls there.
This, investors were told, has led to the loss of a certain type of customer called a Model B client.
“In addition, the costs associated with the Skilled Person review are higher than anticipated,” Jarvis said in an update.
“These factors, combined with reduced trading volumes caused by market conditions, mean that the company is now trading below current market expectations.”
The stock fell 22.9p to 124.9p in the first 30 minutes of trading on Thursday.