FCA stops British Steel advice firm disposing of assets

In March 2022, the FCA launched a consultation on a redress scheme for former members of BSPS. The FCA wrote to firms who had advised on BSPS making clear that firms should not dispose of any assets and maintain adequate financial resources. This is to ensure that firms can meet the costs of carrying out a review and compensating customers for any unsuitable advice they may have given if the scheme is implemented.

The FCA said it will impose requirements on firms when they are unable to demonstrate they have adequate financial resources, have failed to act in line with the FCA's instructions to protect assets or are attempting to take any action to avoid potential compensation payments.

In a statement, the FCA said: "DS&C was not able to demonstrate that it had adequate resources, which is a minimum requirement for firms regulated by the FCA. In addition, the FCA has deemed that imposing the requirement is in the interests of its statutory objective to protect consumers.

"DS&C has the right to refer our decision for review by the Upper Tribunal (Tax and Chancery Chamber)."

In February, the FCA also stopped AJH Financial Services from disposing of assets without permission.