Financial Conduct Authority  

FCA urged to act as steelworkers ‘running out of time’

“We have several investigations ongoing into the advice that was given at the time. We have banned contingent charging in most circumstances to remove the conflicts of interest which arise where a financial adviser only gets paid if a transfer goes ahead.”

BSPS saga

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Both Mr Kinnock and Mr Smith have been campaigning and lobbying regulators, as well as the Financial Services Compensation Scheme and ombudsman service, in order to get justice for British Steel victims.

Three years ago British Steel Pension Scheme members were asked to decide whether to move their DB pension to a new plan, BSPS2, or stay in the existing fund, which was then moved to the PPF as part of a restructuring of pension liabilities, or to transfer out altogether.

As a result about 8,000 members transferred out of the old scheme, with transfers collectively worth about £2.8bn.

But concerns about the suitability of the transfers were soon raised, leading to an intervention from the FCA that resulted in 10 companies – key players in the debacle – stopping their transfer advice service.

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