Berkeley Berry Birch has been given six weeks to plug the 11m capital adequacy deficits of two of its subsidiaries before the FSA shuts them down after dropping its appeal to the Financial Services and Markets Tribunal.
BBB has announced it has withdrawn references to the FSMT against the FSAs decision in July to issue decision notices to cancel the permissions of Berkeley Independent Advisers and Berry Birch & Noble Financial Planning (Weston) because of the capital deficits.
The firm says the FSA has agreed not to serve the final notices before 27 February with BIA and Weston having to provide written opinions from its auditors they are compliant with the prudential rules on capital adequacy.
BB&NFP, which ceased to conduct regulated business in December in a move to address some of the capital adequacy problems, has also withdrawn its reference to the tribunal.
BBB chairman John Joyce says: This agreement will enable BBB to focus fully on its refinancing plans. The BBB Board has met and reviewed the plans, which are proceeding within the expected timescales.
BBB marketing director Carey Shakespeare says: This is a pragmatic decision to save legal costs on both sides and allow us to concentrate on raising the required capital.