A Welsh MP has told Parliament that he fears transfers out of the British Steel Pension Scheme are an emerging “scandal”.
Labour MP for Blaenau Gwent in Wales Nick Smith told the House of Commons yesterday that he was still looking for more help and guidance from the regulator to ensure transfers were appropriate.
Smith said: “I am afraid that a steelworkers’ pension scandal is brewing. My constituents are worried about making the wrong decision on pension transfers, and the FCA is providing insufficient support to steelworkers at this crucial time. May we have a ministerial statement and an action plan from the FCA to support steelworkers who are trying to do the right thing for their families?”
Energy minister and commons leader Andrea Leadsom replied: “Pensions are a complex subject, and anybody trying to make decisions needs the right advice. The hon. Gentleman is right to raise the issue and I encourage him to seek further guidance from the FCA so that he can provide support to his constituents.”
The BSPS has remained in the headlines over the recent weeks ahead of a deadline for members to make a decision on transferring or taking Pension Protection Fund benefits. The FCA has already reviewed client files at 16 advice firms amid concerns that members are being offered inappropriate incentives to transfer. A number of advice firms have already ceased transfer business after discussions with the FCA.