FCA introduces emergency powers against British Steel advice firms

No consultation

Tom Ellis
clock • 2 min read

The Financial Conduct Authority (FCA) has introduced emergency powers to prevent financial advice firms that advised members of the British Steel Pension Scheme (BSPS) from disposing of assets to avoid paying compensation.

The regulator has introduced these rules without consultation, it said, because of fears firms would dispose of assets in the time it took to consult on the rules. The measures will apply from 27 April. The watchdog's temporary measures apply to firms that advised five or more BSPS members to transfer out of the scheme between 26 May 2016 and 29 March 2018.  Firms must report to the FCA whether they can meet the potential cost of the BSPS redress. They will have to comply with the asset restriction rules until they confirm to the FCA they have sufficient resources to pay their potenti...

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