The Financial Conduct Authority (FCA) has stopped independent financial adviser, Advantage Wealth Management (AWM), from carrying out regulated activities.

The regulator’s action follows concern the firm is not being managed in a way that ensures its affairs are conducted in a "sound and prudent manner", it said, following the issuing of a first supervisory notice on 22 December.

The notice outlined that AWM is failing, or is likely to satisfy, a number of conditions in the Financial Services and Markets Act 2000.

Furthermore, the FCA said AWM has repeatedly failed to respond to requests for information over an extended period, and that it has "serious concerns" about the circumstances in which several clients had their investments moved into cash holdings.

The regulator is also not satisfied that the financial adviser has, or will have, appropriate financial resources.

Under the restrictions, AWM must not dispose of any assets, nor conduct regulated activities without the regulator’s written consent. As a result, it can no longer act as an independent financial advice or provide financial advice.

The FCA has told AWM customers that they should seek a new financial adviser.

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