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A financial regulator in the UK has revealed that it is officially investigating the UK activities of Greenery, a supply chain finance company, Reuters reported.

Supply chain finance is a type of cash advance.

The United Kingdom Financial Conduct Authority (FCA) is investigating issues relating to Greensill Capital UK and Greensill Capital Securities in addition to Mirabella LLP Advisorsoversight of Greensill Capital Securities, says FCA CEO Nikhil Rathi, according to the report.

However, the watchdog said it was just responsible for overseeing how Greensill Capital UK followed anti-money laundering (AML) practices. To that end, Rathi said “the wider activities undertaken by GCUK were not regulated by the FCA”, according to the report.

Rathi also noted in the report that “creating a supply chain finance instrument is not a regulated activity.”

But Rathi said the watchdog is “cooperating with its counterparts in other UK law enforcement and regulatory agencies, as well as authorities in a number of overseas jurisdictions”, the report said.

As PYMNTS previously reported, Credit Suisse Group AG froze $10 billion in investment capital that fed Greensill Capital.

The financial services firm’s asset management division said it would not allow investors to buy or sell four private equity funds that rely solely on securities manufactured by the financial startup.

“A certain portion of the assets of the funds are currently subject to considerable uncertainty as to their precise valuation,” Credit Suisse said in an earlier statement.

The investment bank was concerned about the finance start-up’s exposure to British steel businessman Sanjeev Gupta, unnamed sources said in a Wall Street Journal report earlier this year.

After Credit Suisse Group suspended funds and bought out its banking services arm from UK regulators, London-based Greensill Capital filed for insolvency protection.

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