The Financial Conduct Authority (FCA) has stopped financial advice firm David Stock & Co Limited (DS&C) from disposing its assets without permission.
The company advised on pension transfers from the British Steel Pension Scheme (BSPS), the watchdog said.
In March 2022, the FCA unveiled a consultation on a redress scheme for BSPS victims alongside a ‘Dear CEO’ letter informing advice businesses involved in the pension transfer scandal to keep adequate financial resources and refrain from disposing of any of their assets unless they received regulatory approval first.
The move was intended to make sure firms had enough funds set aside in case the redress scheme is approved.
The FCA added that it will impose requirements on companies that are unable to demonstrate they have adequate financial resources, those that have failed to comply with its instructions to protect assets, or are attempting to avoid any potential compensation payments.
The regulator said: “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.”