FSA restricts A2O on pensions and investment new business
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The FSA has ordered IFA network Alpha to Omega to stop new business on certain funds, including Arch cru, as well as structured products, pension transfers and drawdown.
The FSA’s register reveals that A20 will stop, with immediate effect, all new business connected with:
- Arch Cru Funds
- Barclays Capital Jade Elixir Deposit Account
- Curzon Fixed Capital Protected Profit Lock In Deposit Account
- Guildhall Absolute Return Fund
- Vinum Bordeaux First Growth Plus Fine Wine fund
The register states that A20 is “not to engage in the provision of advice relating to or sales of “ occupational pension transfer business, pension switching or transfer business, pension drawdown business, split capital investment business, and structured products.
A20 will have to ensure than any new business has been reviewed by Bond Pearce LLP and that the law firm has confirmed that it considers that the business complies with all applicable rules and requirements of the regulatory system.
By close of business on 12 January 2010, Alpha to Omega will have to send a letter on its headed notepaper by first class post and/or electronically to each of its appointed representatives in a form approved by the FSA prior to its dispatch, notifying them of the change in its permissions.
A2O will also have to provide the FSA with copies of the said letter together with a list of all appointed representatives to which it was sent and the date on which it was sent.
Despite numerous attempts to contact A2O management over recent weeks, the network have consistently failed to provide Money Marketing with comment.
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Readers' comments (8)
Anonymous | 14 Jan 2010 9:12 am
Sounds like A2O have messed up royally and are unable to control the risks their AR's are taking.... scary, if they are this bad I wonder why FSA have not closed them down?
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Incompetent Regulators Awards Team | 14 Jan 2010 10:25 am
Dear FSA has the horse bolted already?
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derek richings | 14 Jan 2010 11:37 am
No surprise, I remember who was running it! Another prediction of mine that came to pass!
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Steve Laird | 14 Jan 2010 11:56 am
Apart from Cru, which I thankfully avoided, I've never heard of any of these funds. Thank goodness for my sheltered life!
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Anonymous | 14 Jan 2010 2:00 pm
Is it likely they will now close? How does this affect their direct IFA division?
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Anonymous | 14 Jan 2010 5:54 pm
Isn't this where Malcolm Kilminster now works? Is this the curse of Kilminster striking again??!!!
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Anonymous | 15 Jan 2010 3:29 pm
This whole situation has twin threads. First; the FSA has changed its stance on supervision and now requires more intensive and tick-box supervision rather than principles based as before. Second; A2O have been found particularly wanting in their supervision records and cannot show the FSA that they have recorded proff on competency for their advisers. As usual it is the adviser that has to carry the can. How much longer can networks pretend they provide service and security to advisers?
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Lisa Sargeant | 22 Jan 2010 10:01 am
My partner is caught up in this mess. A2O gave all IFA's registered with the network 2 weeks notice to sit 2 days of exams. Whilst the exams were being sat, notification came through that the FSA had pulled permissions.....can you imagine how all these guys must feel. SO whilst A2O were apparently complying with FSA requirements, the FSA virtually pulled the plug. This is going to give people the push they needed to jump ship.....
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