City broker SVS has been forced out of business by the FCA, following an investigation.
“Acting on intelligence received about the assets in which SVS invested its clients’ money, we conducted urgent supervisory work and identified serious concerns about the way in which the business was operating,” the FCA said in an official communication on its website.
The news prompted change of broker announcements from Kibo Energy PLC (LON:KIBO) and its sister company Katoro Gold PLC (LON:KAT).
Sunrise Resources (LON:SRES) was affected too, and opted to move to Beaumont Cornish.
SVS was joint broker to BlueRock Diamonds plc (LON:BRD), which will continue to use SP Angel Corporate Finance LLP and Turner Pope Investments.
Other companies that use SVS include Westminster Group PLC (WSG), Premier African Minerals Ltd (LON:PREM) and ValiRx PLC (LON:VAL).
SVS had also committed £200,000 to a recent placing by Kodal Minerals PLC (LON:KOD), due to settle on 12 August 2019. Kodal is now seeking confirmation, via its broker SP Angel, that the settlement will still take place, given that the shares have already been issued.