Unlike deVere, Holborn was sanctioned under section 55L of the Financial Services and Markets Act (2000), highlighting the various tools at the regulator’s disposal to investigate pension transfers.
Simon Parker, chief operating officer of Holborn Assets, said at the time: “Our Holborn UK company, which is an entirely separate entity to our Dubai company, has not been closed down.
“Our ability to provide DB transfer advice has been put on hold pending a review of a number of client files.”
The FCA issued a stark warning to firms advising on domestic and international pension transfers in January 2017.
Firms were put on notice after reports that some clients are being scammed and their funds transferred into unsuitable investments.
In March, the FCA set out a plan to give better redress to those clients who were given unsuitable advice to transfer out of a defined benefit (DB) pension scheme.
The FCA estimated that firms received between 2,700 and 8,000 pension transfer complaints each year, and that under the current redress methodology the average redress is approximately £20,000 ($24,912, €23,365) to £60,000 per complaint.
