The FSA has appointed investigators to scrutinise the liquidation of Berry Birch & Noble Financial Services following its decision to block Berkeley Berry Birch's bid to dump the national IFA shell's potential liabilities.
The regulator halted the transfer of BBNFS' business to BBN Financial Planning in April as “a precautionary measure” pending its review of transactions that occurred before the liquidation.
It has now appointed investigators to probe the liquidation and BBNFP's potential purchase of BBNFS, which the FSA fears could leave the business with insufficient assets to cover anticipated liabilities.
BBB says it has been told by the FSA that the move is not an indication that it has done anything wrong, pointing out that it continues to work closely with the regulator. But if the investigation – which could clear the way for the purchase of BBNFS – uncovers rule breaches the FSA is likely to take enforcement action.
A BBB statement says: “The FSA has informed us the appointment of investigators does not mean that they have determined that rules breaches and/or other contraventions have occurred. The directors remain confident in the outcome of the investigation.”