A20 has sent a letter to all its members/advisers informing them that the regulator has decided to change its permissions and ordered them it to cease all regulated activities for which it has permission from 5pm on January 21, 2010.
The decision does not apply to any regulated activities undertaken to complete existing transactions, which are proposals or applications which have been signed and dated by the client prior to the January 21 deadline.
A document sent to A20 advisers and seen by Money Marketing, says the FSA has informed A20 of the steps it must take before any applications to restore its Part IV permission are considered, this includes ensuring the competence of its advisers.
Money Marketing understands that A20 has been running a training scheme for its advisers to raise its competence levels this week.
The FSA recently ordered the IFA network to stop new business on certain funds, including Arch cru, as well as structured products, pension transfers and drawdown.
Regulatory Legal Partner Gareth Fatchett says: “We are advising 12 members of A2O concerned about the recent upheaval at the network. An enforced variation of permission by the FSA is never a good thing. Fundamentally, the network has been told to cease giving advice”
“My clients are concerned for their pipeline business and their clients.”
A spokesman for the FSA says the register is currently being updated to reflect the fact that A20’s permissions have changed and that it is currently unable to take on new business.