FSA vows to take action against 'phoenix IFAs'

Speaking at the PIMS event on the Oriana this morning, Michael Lord, head of investments at the FSA, told IFAs the City watchdog cannot take action to prevent firms from becoming insolvent but it will put pressure on firms’ directors to honour complaints liabilities or risk the prospect of being refused future authorisation as a firm or a director. Moreover, Lord says the FSA will intervene to ensure directors have adequate [capital] provision to deal with complaints and pay any resulting claims when closing down an insolvent company and transferring assets to another group. The FSA s...