The FCA has stopped financial advice firm, AJH Financial Services Limited, from disposing of assets without the regulator’s permission.

AJH has advised on transfers from the British Steel Pension Scheme (BSPS), and the FCA said it expects to consult on a redress scheme for former members of the scheme in March.

The regulator had written to firms who had advised on BSPS in December, clarifying that firms should not dispose of any assets and maintain “adequate financial resources”.

However, the FCA has now expressed concern that AJH does not have the sufficient financial resources to pay potential redress claims, and added that it appears to have paid out dividends rather than retaining the assets.

“We will act to prevent firms from disposing of assets which may be required to pay redress,” the FCA said.

“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.”

AJH has the right to refer the FCA’s decision for review by the Upper Tribunal.

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