The Financial Conduct Authority said it intervened because of “very serious concerns.”

The watchdog said it was concerned that the firms’ sole director may have deducted sums from clients without authorisation or without their knowledge.

Nexus was set up by well known industry figure Kerry Nelson who is the CEO. She has had a long career in financial services and in 2022 she won 'Personality of the Year' from an industry trade publication.

It said: “Specifically, it appears that the firms’ director may have taken a total of £2.072m in unauthorised and/or inappropriate withdrawals from clients of the firms.”

It said the conduct appeared to relate to multiple clients and to have spanned at least the period from September 2021 to December 2022.

In its first supervisory notice, the FCA said: “There appears to be evidence that the firms, specifically the firms’ director, has on multiple occasions taken substantial sums in 'fees' from clients to which they were not entitled.

“These sums have then appeared to have been used to fund personal expenditure. The authority has very serious concerns that the firms are not fit and proper persons having regard to all the circumstances and therefore may not be meeting the threshold condition.”

It said there is evidence to suggest that on or around 14 January, the firms’ director was able to access bank accounts held by the firms and withdraw a further £50,000 which was transferred to their personal bank account.

The regulator said the firms’ director is not performing any ongoing functions at the firms. Because of this there is no-one capable of making significant decisions at the firms and no oversight to other staff at Nexus IFA and Nexus IM.

The FCA said: “Consequently, the authority considers it necessary and proportionate to impose the requirements to address the ongoing risk of further dissipation and to preserve the firms’ assets and provide an appropriate degree of protection for the firms’ customers.”

It said the imposition of the requirements should take immediate effect because the matters set out demonstrate that the firm is, “unable to manage its affairs in a sound and prudent manner, and is putting consumers at risk.”

Nexus IFA was incorporated on 27 September 2007 (FRN 584769) and was authorised by the FCA to perform regulated activities from 15 November 2012. It is a financial advice firm.

Nexus Investment Managers Limited (FRN 610663) was incorporated on 12 August 2013 and was authorised by the authority to perform regulated activities from 14 April 2014. It is a discretionary fund manager.

Both Nexus IFA and Nexus Investment Managers are now in administration and have been asked for comment.

The FCA’s supervisory notice containing details of the action is here.

Nexus IFA and Nexus IM have the right to make written or oral representations to the FCA on the notice. They also have the right to appeal to the Upper Tribunal.