The FCA says all regulated advisers should keep their professional indemnity insurance providers informed of any claims made against them.
In an update published today, the watchdog reiterates the message firms are responsible for ensuring they adhere to the terms of their indemnity agreement in its latest briefing on the British Steel Pension Scheme saga.
The regulator also says it is looking into the suitability of the advice firms gave to members of BSPS and wants to ensure clients know they can complain to the Financial Ombudsman Service.
It adds: “Any former BSPS member who was given financial advice to transfer out of the BSPS, and is unsure if the advice was suitable, should make a complaint. Firstly, they should make the complaint to the firm that provided the advice.
“The firm should give them a formal response within eight weeks. If complainants do not get a response within eight weeks, or don’t agree with the response, they should contact the FOS to refer the complaint to them.”
Also published today among a host of FCA responses to Freedom of Information Act requests, is a document about the watchdog’s supervision work on BSPS.
The FOIA request ask when the FCA first made contact with ten firms that had their permissions voluntarily removed over concerns relating to their pension advice processes.
These firms were Retirement & Pensions Planning Services, Active Wealth, Acklam Financial, Pembrokeshire Mortgage Centre, West Wales Financial Services, Bartholomew Hawkins, County Capital Wealth Management, Inspirational Financial Management, Mansion Park and Vintage Investment Services.
The FOIA request also asks if the above contact was a part of the FCA’s multi-firm supervision exercise into pension transfers.
A table reproduced below answers these two questions:
Last December Money Marketing revealed the FCA is setting up a central database on firms involved in defined benefit transfers to help it monitor the sector better.