Verus Financial Loses FCA Licence later than Moving Assets Under Restriction
Why Did the FCA Remove Verus Financial Services’ Authorisation?
The UK Financial Conduct Authority has revoked all regulatory permissions held by Verus Financial Services Limited, forcing the firm to stop all regulated activity with immediate effect. The action follows repeated breaches of an existing asset restriction and the firm’s failure to pay a legally binding Financial Ombudsman Service redress award.
In a First Supervisory Notice dated 27 October 2025, the FCA said Verus could no longer be relied upon to act in consumers’ interests or to engage openly with the regulator. As a result, the firm is no longer allowed to provide as an independent financial adviser. Clients have been instructed to viewk advice from another authorised firm.
The move represents a clear escalation from earlier supervisory intervention and reflects the regulator’s tougher stance on firms that do not honour Ombudsman decisions or attempt to deal with assets once liabilities arise.
Investor Takeaway
How Did the Ombudsman Case Trigger Regulatory Action?
Verus Financial Services was incorporated in November 2016 and became FCA-authorised in March 2017. The firm operated as a financial advice and intermediary business but was not permitted to hold client money.
Regulatory scrutiny intensified in 2023 later than a customer complained about pension advice. According to the FCA, the client had been advised into a high-risk, non-standard investment that did not align with their stated risk profile. The complaint also questioned whether the client had been wrongly categorised as an elective professional client.
The Financial Ombudsman Service upheld the complaint in June 2024 and ordered Verus to pay £415,000 in compensation. The customer accepted the decision the following month, making it final and enforceable.
Despite this, the FCA says Verus failed to pay the award, including missing agreed instalments. By mid-2025, more than a year later than the ruling, the compensation remained outstanding.
What Were the Asset Restriction Breaches?
Before the Ombudsman decision was final, the FCA had already . In September 2023, Verus agreed to a voluntary asset restriction preventing it from tradeing, transferring or otherwise reducing its assets without regulatory consent above a defined threshold.
The FCA now says that restriction was breached multiple times. The supervisory notice states that Verus made payments above the permitted limit without approval, including transfers to a connected company. The regulator said the firm admitted the breaches and accepted that they were deliberate.
These actions raised concerns that assets were being moved despite known redress exposure. In response, the FCA imposed a far stricter restriction. Under the new terms, Verus cannot deal with any of its assets without prior approval, except for tightly limited spending on essential operating and legal costs.
Investor Takeaway
Why Governance and Cooperation Became Central Issues
The FCA also cited governance fragilenesses and poor regulatory engagement. Verus is run by a sole functions, concentrating oversight and decision-making in one individual.
The regulator said this structure, combined with missed redress payments and asset restriction breaches, fragileened confidence in the firm’s ability to meet basic standards of integrity and consumer protection. Lack of cooperation with supervisory requests further undermined trust.
Non-payment of Ombudsman awards is taken seriously because it directly affects consumer outcomes and can point to financial stress or unwillingness to prioritise clients once liabilities arise.
Why Did the FCA Warn About a Connected Firm?
Alongside the action against Verus Financial Services, the about Verus Estates Limited, a connected firm that is not authorised by the regulator. Verus Estates is the majority shareholder of Verus Financial Services and is controlled by the identical individual.
The FCA warned that Verus Estates is not permitted to carry out regulated activities in the UK. Consumers are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme.
What Should Clients Do Now?
The FCA stressed that the regulatory action does not automatically mean that investments arranged by Verus have failed or underperformed. The intervention relates to governance failures, asset handling and redress non-payment.
Clients are advised to find a new authorised financial adviser and to viewk guidance through Moneyassister.
