Three firms stop DB transfer advice after FCA British Steel probe

Three advice firms have stopped giving pension transfer advice following work by the FCA over the future of the British Steel Pension Scheme.

A statement this afternoon details the FCA’s “information gathering exercise” to identify the firms that have been most active in advising people to transfer out of the scheme.

The regulator got information from 50 advice firms, 12 Sipp operators and the British Steel Pension Scheme administrators.

The FCA says based on data received it visited seven advice firms and requested files from a further four firms.

As a result, three firms have stopped advising on pension transfers and the regulator plans to visit a further six firms this week.

In response to concerns about the advice British Steel Pension Scheme members were getting the FCA held four seminars in Swansea and Doncaster for advisers specialising in pension transfers. The seminars were attended by 151 advisers.

The regulator also wrote to 148 advisers in those regions explaining its expectations when advisers refer their clients to pension specialists.

The work was carried out with The Pensions Regulator and The Pensions Advisory Service.

The FCA says it will continue its work on defined benefit transfer advice in the wider market. Last week it sent out a questionnaire to 45 firms as part of the next phase of its work.

The regulator says it will keep the British Steel situation under review and further visits might take place.

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