FCA places limits on former BSPS adviser amid plans for redress

The Financial Conduct Authority (FCA) has stopped another former adviser on the British Steel Pension Scheme (BSPS), David Stock & Co Limited (DS&C), from disposing of assets without FCA permission.

The FCA recently launched a consultation on plans for a compensation scheme worth £71.2m for former members of the BSPS, after research suggested that around 47 per cent per cent of the advice relating to the scheme was unsuitable.

In light of these plans, firms who advised on the BSPS were told not to dispose of any assets and to maintain adequate financial resources in a Dear CEO letter sent by the regulator in November 2021.

However, the regulator has now confirmed that DS&C was unable to demonstrate that it had adequate resources, a minimum requirement for firms regulated by the FCA, stating that imposing the requirement is in the interests of its statutory objective to protect consumers.

The FCA also emphasised that it will continue to monitor firms who advised on BSPS transfers and take action where necessary, having previously placed similar limitations on the disposal of assets for another former BSPS adviser, AJH Financial Services.

DS&C has the right to refer the regulator’s decision for review by the Upper Tribunal, Tax and Chancery Chamber.

The FCA has faced continued scrutiny over its handling of the BSPS case, with an inquiry from the Public Accounts Committee into plans to support steelworkers who might be entitled to redress still ongoing.

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