The Financial Conduct Authority (FCA) has stopped AJH Financial Services Limited, a firm that advised on transfers from the British Steel Pension Scheme (BSPS), disposing of assets without FCA permission.
The FCA expects to consult on a redress scheme for former members of the British Steel Pension Scheme in March 2022. In December 2021, we wrote to firms who had advised on BSPS making clear that firms should not dispose of any assets and maintain adequate financial resources.
We are concerned that AJH does not have sufficient financial resources to pay potential redress claims and appears to have paid out dividends rather than retaining the assets. AJH has the right to refer our decision for review by the Upper Tribunal (Tax and Chancery Chamber).
We will act to prevent firms from disposing of assets which may be required to pay redress. We will look to impose requirements where firms have not acted in accordance with the expectations in our Dear CEO letter or have attempted to phoenix or put in place structures to avoid potential redress liabilities. We will continue to monitor firms who have advised on BSPS transfers and take action where necessary.
23 May 2022 update
Further to this announcement, a Second Supervisory Notice, confirming these requirements, has been issued to the firm.