Concerns have arisen over consumer protection after a Birmingham IFA remained on the FSA register despite having gone into liquidation last September.
Stourbridge-based Paul Davies & Associates appointed corporate recovery firm Butcher Woods as liquidator last September but is still listed as authorised on the FSA register, with no changes to its permissions.
The FSA says it cannot alter the status of a firm without being advised by an administrator or liquidator.
A Butcher Woods spokesman says: “There is a legal process with notices involved before the striking off takes place. A firm of lawyers has been instructed to deal with this case.”
Compliance consultant Adam Samuel says: “If a firm is even in mild threat of facing insolvency, then it must notify the regulator to cancel, if not vary, its permissions, as it will then be in breach of the FSA’s threshold conditions.”
Wealth Management associate director Tim Hines says: “This brings into question the FSA’s function as a protector of consumer confidence. We are supposed to have the most robust regulatory system in the UK so it should be accountable.”
Paul Davies was unavailable for comment.