Subject of Enforcement: Alexander David Securities Limited
Date of Notice: 29/04/2022
Overview: FCA stops Alexander David Securities Limited disposing of assets without permission
The FCA has imposed requirements on corporate advisory firm, Alexander David Securities Limited (ADSL), which means it must not dispose of any assets without the written consent of the FCA.
Since 29 June 2020, ADSL has not been permitted to undertake any regulated activities, hold client money or assets nor issue or approve for third parties any financial promotions.
The FCA is acting so money is available to pay compensation owed by ADSL, including so far unpaid redress awarded by the Financial Ombudsman Service, to those given unsuitable pension advice.
ADSL previously had multiple agents, known as Appointed Representatives, for which it was responsible. Two of these firms, St Pauls Marketing Limited and Templeton Securities Limited, provided investment advice. These firms recommended clients transfer their pensions into self-investment personal pensions and to invest those funds in mini-bonds. The Financial Ombudsman Service has upheld complaints that this advice was unsuitable and the transfers were not in the customers’ best interests.
Consumers who may have been affected should contact the firm in the first instance. If there is information which you wish to share with the FCA please co
Penalty : Disposal of Assets Limitation
Subject of Enforcement: David Stock & Co Limited
Date of Notice: 21/04/2022
Overview: The Financial Conduct Authority (FCA) has stopped David Stock & Co Limited (DS&C), a firm that advised on transfers from the British Steel Pension Scheme (BSPS), disposing of assets without FCA permission.
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 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.
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).
The FCA will continue to monitor firms who have advised on BSPS transfers and take action where necessary.
Penalty : Disposal of Assets Limitation.