The FCA has prevented a corporate advisory firm from disposing of assets without its approval due to unpaid compensation.
In a statement published last week (April 29), the FCA said it has imposed requirements on Alexander David Securities, meaning it must not discard of its assets without the regulator’s permission.
The firm will now have to seek written consent from the regulator before selling any assets.
The firm, which according to the FCA has been banned from undertaking regulated activities or hold client assets since June 29 2020, previously had multiple agents for which it was responsible.
Two of these firms, St Pauls Marketing Limited and Templeton Securities Limited, provided investment advice, and recommended clients transfer their pensions into self-invested personal pensions and to invest those funds into mini-bonds, the regulator said.
The Financial Ombudsman Service has upheld complaints that this advice was unsuitable and the transfers were not in the customers’ best interests.
The city watchdog said that it is acting so that money is available to pay compensation owed by ADSL, including unpaid redress awarded by the Fos.
The ban comes a week after the FCA said it will use its emergency powers to prevent firms who 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 published on April 25.
It said the changes were in light of the risk that some firms will take steps to get rid of their assets if the rules were consulted on first, with the measures applying from April 27, 2022.