Fiske plc (AIM:FKE), an AIM-quoted asset manager, saw its shares drop 22% on Wednesday after announcing it had agreed to a voluntary requirement with the Financial Conduct Authority (FCA) that introduces restrictions on some of its activities.
It follows an FCA review of the company’s systems and controls for monitoring investment management, which included a Skilled Person report completed over the summer.
Fiske noted that the VREQ does not affect existing clients or prevent the company from accepting new funds and assets from them. The restrictions do, however, impact the onboarding of any new clients that are not already connected to existing ones, as well as certain limitations on transfers of company assets.
The board said the restrictions are expected to have minimal impact on its existing activities.
"The company continues to operate with full client money protection permissions in accordance with applicable regulatory regimes and remains committed to maintaining a strong and transparent relationship with the FCA," Fiske said in a statememt.
It added: "The company continues to co-operate with the FCA to ensure the restrictions on the Company are lifted as soon as possible. There is an agreed programme of actions already underway to strengthen the company's systems and controls which will be completed over the coming months."
Fiske, in a separate statement, meanwhile, released a trading update in which it said the business performed well during the second half of its financial year, with revenues and pre-tax profits above the prior year.
Based on unaudited numbers, it expects revenue to be in the region of £7.9 million, up 6% on the prior year, whilst profit on ordinary activities is anticipated in the region of £1.4 million, up some 43%.
It noted that the firm had more than £6.5 million of cash on its balance sheet.
Fiske shares were down 22% in London, changing hands at 60p.