The FCA has made the following announcement.
“This morning we have announced that we are using emergency powers to prevent certain financial advice firms, who advised members of the British Steel Pension Scheme (BSPS), from disposing of assets to avoid paying compensation. This follows our previous announcement on proposals for a redress scheme for former BSPS members.
The temporary measures apply to firms that advised five or more BSPS members to transfer out of the pension scheme between 26 May 2016 and 29 March 2018 (subject to certain exclusions).
The requirements mean that in-scope firms have to report to us whether they can meet the potential cost of the BSPS redress liabilities. Firms will have to comply with the asset restriction rules until they confirm to us that they have sufficient resources to pay their potential redress bill. If a firm is subject to the asset restriction rules, it will not be able to undertake transactions that are not ‘in the ordinary course of business’.
If the BSPS proposed redress scheme is introduced, we may later consult on extending the asset retention rules until firms have paid all the compensation owed.”
Conduct Rules Breaches – follow up
Huw Reynolds Compliance Conduct, FCA, Pension, Senior Manager, Update
We wrote recently about the Conduct Rules and, in particular, breaches and notifications . See here. This article is intended to clarify some of the grey around COCON breaches. All of the following is taken from Policy Statement PS 18-14. When is disciplinary action required? When and how a firm decides to undertake disciplinary action […]