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FCA step in to stop IFA stripping assets from British Steel

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AJH Financial Services, an IFA firm based in Swansea who gave pension transfer advice to British Steel members has come under the regulatory spotlight once again.

On the 14th February, an alert was published by the regulator raising the concern that AJH Financial Services did not have the funds to pay potential British Steel-related redress claims and was found to be disposing of its assets.

The FCA reported the Swansea-based firm paid out dividends to its directors rather than retaining assets. This is against the instructions given to the firm by the regulator though AJH Financial Services has the right to refer the FCA’s decision to an Upper Tribunal.

The regulator sent a ‘Dear CEO’ letter late last year to warn IFAs in the scope of the potential BSPS redress scheme to retain assets and ensure they have adequate financial resources to cover any potential claims against them in the future. 

According to a constraint on AJH Financials’ FCA Registration, the firm ‘must not, without the prior written consent of the FCA, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets, whether in the United Kingdom or elsewhere.

If you have been affected by the advice given by AJH financial or any other financial adviser and lost money, then please contact our team today. We’re happy to offer free initial advice and may be able to help even if you’ve been declined by other legal teams.