The Financial Conduct Authority has cancelled the permission of KBFS Financial Limited (FRN: 831504) to carry out regulated business following restrictions imposed in October over concerns about its failure to pay redress to former members of the British Steel Pension Scheme.

The FCA said it had cancelled the firm's permissions because the Weymouth firm was currently carrying on no regulated activity to which the firm’s Part 4A permission relates.

Part 4A permission allows firms to carry out regulated business.

The cancellation took effect on 9 February and means the advice firm no longer has permission to carry on any regulated activities.

In October the FCA said it appeared KBFS had failed to pay the redress awarded by the FOS in relation to unsuitable pension-transfer advice given to five clients with a defined-benefit occupational pension scheme with British Steel.

The regulator said the firm failed to engage with it in an open and cooperative way. It said KBFS did not provide the FCA with information requested about its financial position and Financial Ombudsman Service awards it was due to pay out. As a result it took action.

The FCA said: “On 23 October 2023, we imposed a number of restrictions on KBFS Financial Limited, preventing it from carrying on any regulated activities and restricting access to its assets.”

The firm was authorised by the FCA on 1 July 2019 and had a Part 4A permission to advise on investments, P2P agreements and pension transfers and pension opt outs.

The FCA said KBFS also, “failed to pay periodic fees and levies owed to the authority as required under the handbook.”

The firm was warned on 20 December that its Part 4A permission would be cancelled unless it responded to the FCA’s notice. It failed to respond so on 12 January the FCA gave it notice that its permission would be cancelled on 9 February.

According to Companies House the directors of the firm were Nicholas Brown, 63, Kathryn Brown, 60, and Michael Brown, 33, of Weymouth.

The directors applied for the company to be struck off the register in August 2023 but the application was suspended on 9 September, "as an objection has been received by the Registrar", according to Companies House records.