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FCA concerned ex British Steel pension members received ‘unsuitable advice’

The FCA will help former members of the British Steel Pension Scheme determine if they should make a complaint about the advice they received when they transferred out of the scheme.

The regulator is hosting two events in Port Talbot to provide information for potentially affected people as it is concerned some members may have received “unsuitable advice”.

It says financial advisers and firms must be held to account if they do not comply with the rules set out for them by the regulator.

Counting the human cost of the British Steel saga six months on

Former members of the pension scheme will be provided with information about how the financial advice process should work.

They will also be told about the type of information BSPS members should have been asked by their financial adviser before a recommendation was provided and how advisers needed to demonstrate their recommendation.

Guidance on the services financial advisers may continue to provide to members, including regular reviews of investments, will also be explained.

The FCA says the events will give former members the chance to decide whether to make a complaint to the Financial Ombudsman Service if they think they received “unsuitable pension transfer advice”.

FOS can now award compensation of up to £160,000 for actions before 1 April 2019.

British Steel transfer complaint details surface

Promoting the events, the FCA says: “As a financial regulator, we are concerned that some members who transferred out of the BSPS may have received unsuitable advice.

“Our role as the Financial Conduct Authority is to regulate firms and financial advisers in the UK and set rules for firms and advisers which they must follow and are held to account if they don’t.”

The Financial Services Compensation Scheme, FOS and the Money and Pensions Service will also attend the events.

In 2017, the FCA published its expectations of firms when advising on pensions transfers. This laid out the regulator’s concern that consumers receiving pensions advice are at risk of transferring into unsuitable investments.

The sessions will be held on Wednesday 21 August and Thursday 5 September 2019 at Princess Royal Theatre, Civic Centre, Port Talbot from 4.30pm until 6pm.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. This will no doubt open the floodgates for compensation claims, increasing PI costs and dumping more liabilities onto the honest advisers, who have had enough by now.

    It is a pity that we do not have a Proceeds Of Crime Act equivalent to reclaim assets accumulated by what is at least pecuniary advantage by deception. Whilst the worst you can get is a slap on the wrist these shady practices will continue.

  2. FCA concerned ex British Steel pension members received ‘unsuitable advice’

    No S*** Sherlock.

    However, it would be interesting to sit in on this meeting to see what the FCA says good looks like.

  3. Are FOS looking for business?.

  4. I know its Monday morning….

    We all know DB transfers is a very complex and subjective area, only conducted by advisers highly qualified to do so !

    But here we have a group of unqualified regulatory staff advising BSP members on whether they have been miss-sold or not, leaving the members to make judgement alone, on the merits of making a complaint ?

    How is this going to go then ?

    I have the Dambusters theme tune reverberating around my head…. as I fear flood of claims of biblical proportions with no time to build an ARK.

  5. In other news, the Solicitors Regulation Authority is holding workshops for recipients of legal advice so they can assess whether they got the right advice. A spokesman said it might help if you had a law degree to start with but if not we’ll bring you up to speed in a couple of hours.

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