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It's not a letter from a solicitor, it's from a competitor, so be suspicious of anything it says. As said in a previous post, the ASA would not be interested. I doubt any of the other organisations mentioned would be either. From what you have said it doesnt contravene Google's T&C.
On a side note, there are thousands of newspaper websites, national portals and the like which have financial sections with financial articles etc. They normally have a disclaimer on the page saying that the article is for informational purposes and does not constitute legal advice. Surely these are not registered with the FSA and they're openly admitting they're not offering professional financial advice. I would advise you to add a similar to the footer of each page.
If it were me, I'd either ignore them completely so as not to waste any time on them, or write a letter back telling them they should be ashamed of themselves for attempting to use such disgraceful, dishonest and underhand tactics. Either way, I'd reinstate the site and it would possibly spur me on to come up with a strategy to completely knock them off the first page of results.
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