Holborn Assets makes controversial FCA pension claim as it vows to resume offering advice
The UAE-based Holborn Assets was mired in controversy yesterday after stating it is resuming its pension transfer advice in the UK despite a statement on the Financial Conduct Authority’s (FCA) disputing their claim.
While the FCA’s website confirms that Holborn Assets can resume business in the UK, the financial advisory firm based in Dubai must still refrain from offering guidance to its clients on defined benefit (DB) pension transfers.
According to notice on the UK regulator’s website, which recently replaced an earlier posting, under section 55L of the Financial Services and Markets Act (2000), the firm must: “cease all regulated activity relating to pension transfer business until independent verification via a Skilled Person is provided to the FCA that a robust and compliant advisory process is in place in respect of the pension transfer business introduced by overseas advisers”.
The notice added that the firm must “undertake a past business review of all pension transfer business, including business introduced by overseas and UK advisers”.
Holborn Assets, however, refuted the FCA statement and claimed the restriction, which was first put in place in March, had been lifted after recruiting an external consultancy to sign off on any advice it provides.
“As of today, these restrictions are no longer in play and will be removed from the website shortly,” said Bob Parker, the chief executive of Holborn Assets. “The key to moving forward is the appointment of an external FCA-approved consultancy firm to sign off all advice.”
Holborn was among a number of international financial advisory firms caught in a UK regulatory crackdown on pension transfers earlier this year.
In February, the UK arm of the international financial advisory firm deVere Group was also ordered to stop providing reports for overseas pension transfers by the FCA.
At the time of the Holborn ban in March, Mr Parker said the FCA had no UAE jurisdiction and that the company would continue transferring pensions and performing other services for its expat customers in the Emirates.
DB pension transfers have been heavily monitored by the FCA, which earlier this year warned expats to be wary of schemes offered by local advisers, among them those based in the UAE.