Target Newsletter - Issue 186 February 2023

that are not ‘in the ordinary course of business’.

Firms subject to the asset restriction rules would be able to continue carrying on their ordinary business, such as making salary payments and pension contributions and paying general operating costs, but could not carry out other transactions that might reduce the assets that they have to meet potential redress liabilities. Firms that have assessed and notified the FCA that they have sufficient assets to meet their estimated BSPS liabilities are not affected by the asset restriction rules. Next steps The asset retention rules were extended with effect from 31 January 2023. In-scope firms are required to complete an FRA at least monthly, and immediately if the terms or availability of their PI insurance change or there is any other change in circumstances that could materially reduce their ability to meet BSPS claims. If the outcome of the FRA changes then the firm needs to re-notify the FCA. Firms that arranged three or four in scope BSPS transfers must report the outcome of their first FRA to the FCA by 28 February 2023. The asset restriction rules apply to these firms until they have reported the outcome of their FRA to the FCA confirming that they can meet claims for unsuitable BSPS advice. If you have any queries, or comments about this update, please contact your usual Consultant or the Technical Helpdesk on 0161 486 4891, by email at helpdesk@ paradigm.co.uk or using the chat facility on the Paradigm website.

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