The FCA prevented a business advisory firm from disposing of assets without its approval due to unpaid compensation.
In a statement released last week (April 29), the FCA said it had imposed requirements on Alexander David Securities meaning it must not dispose of its assets without the regulator’s permission.
The company will now have to seek written consent from the regulator before selling assets.
The firm, which the FCA says has been banned from engaging in regulated activities or holding client assets since June 29, 2020, previously had several officers for whom it was responsible.
Two of those companies, St Pauls Marketing Limited and Templeton Securities Limited, provided investment advice and recommended that clients move their pensions into self-invested personal pensions and invest those funds in mini bonds, the report said. regulator.
The Financial Ombudsman Service has confirmed complaints that this advice was not appropriate and the transfers were not in the interests of clients.
The city’s watchdog said it was acting to ensure money was available to pay claims owed by ADSL, including unpaid repairs awarded by Fos.
The ban comes a week after the FCA said it would use its emergency powers to prevent companies that advised members of the British Steel Pension Scheme (BSPS) from disposing of assets to avoid paying compensation.
The regulator introduced these emergency rules without consultation in a policy statement released on April 25.
He said the changes were in light of the risk that some companies would take action to dispose of their assets if the rules were consulted first, with the measures applying from April 27, 2022.