Ten advice firms have now voluntarily agreed with the FCA to stop doing work on defined benefit pension transfers related to British Steel.
This information is part of a broader batch of letters that sheds light on the transfer advice steelworkers received along with responses from the FCA indicating how it intends to handle the evidence passed to it.
Work and pensions select committee chairman Frank Field says: “This news brings welcome certainty to the British Steel Pension Scheme members who opted for the new scheme. They should take reassurance from the sponsor’s commitment to ongoing support, and the safety net that the Pension Protection Fund provides.
“That certainty contrasts with the great anxiety faced by the minority of steelworkers conned into unsuitable investments by vulture advisers chasing no-transfer, no-fee payments.”
The nine other firms that have also stopped transfer work are: Vintage Investment Services, Retirement & Pension Planning Services, West Wales Financial Services, Active Wealth, which has gone into liquidation, Pembrokeshire Mortgage Centre, Mansion Park, Bartholomew Hawkins, Inspirational Financial Management and County Capital Wealth Management.
Field adds: “I also welcome the FCA’s latest update on the advice firms caught in its dragnet, but it is vital that the FCA looks not only at the specific firms that were active around British Steel – it must also look much more closely at any and all associates that seek to pick up where those firms left off.
“We warned of a major misselling scandal developing around BSPS, and right now that risk is still real. BSPS won’t be the last scheme restructured in this way. The regulators need to get their houses in order now to protect pension scheme members next time.”
Up to 83,000 members will go into the scheme which is part of the restructuring deal struck between the trustees and sponsor Tata Steel UK in August 2017.