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November 20, 2023

FCA restrictions on KBFS Financial Ltd due to British Steel redress concerns

The Financial Conduct Authority (FCA) has placed restrictions on financial advice firm KBFS Financial Limited over concerns it has failed to pay redress to BSPS clients.

The Regulator announced that it has imposed a number of restrictions on the firm that prevent it from carrying on any regulated activities. The FCA has also restricted KBFS’s access to its assets.

The FCA has ordered the firm to write to all of its clients informing them of ‘the imposition of these Requirements and their effects.’

KBFS Financial Limited was issued with a first supervisory notice from the Financial Conduct Authority (FCA) on 23 October 2023.

 

Why has the FCA placed restrictions on KBFS Financial ltd?

The FCA placed restrictions on KBFS Financial Ltd due to concerns that the firm had failed to pay redress (compensation) awarded to clients by the Financial Ombudsman Service (FOS), and for failing to engage with the FCA “in an open and cooperative way.”

The FCA also said that KBFS had failed to provide information requested about its financial position and FOS awards it was due to pay out.

 

British Steel Pension claims

The clients involved were former members of the British Steel pensions Scheme (BSPS) who had complained about the pension transfer advice given by KBFS Financial Ltd.

The FCA said “It appears the Firm has failed to pay redress awarded by the FOS in relation to unsuitable pension-transfer advice given to 5 clients with a defined-benefit occupational pension scheme with British Steel.”

KBFS Financial Limited is the latest in a string of firms to face FCA action in connection to the BSPS.

Earlier this month the FCA banned an adviser for “failures in advice” given to members of the British Steel Pension Scheme. This came just weeks after it had issued a ban to an adviser for ‘grossly negligent’ transfer advice.

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