A tenth advice firm has voluntarily dropped its pension transfer permissions as the fallout from the British Steel Pension Scheme (BSPS) debacle continues.
In a letter to Frank Field, chairman of the Work and Pensions Committee, dated 12 March, the regulator said Acklam Financial Limited has decided to vary its permissions and will no longer be providing pension transfer advice.
The Financial Conduct Authority (FCA) also gave the names of nine firms no longer offering advice on defined benefit transfers it had previously revealed as to The Pensions Regulator in order for the watchdog to share with trustees.
These are: County Capital Wealth Management
Vintage Investment Services
Retirement & Pension Planning Services
West Wales Financial Services
Active Wealth
Pembrokeshire Mortgage Centre
Mansion Park
Bartholomew Hawkins
And Inspirational Financial Management
Mr Field urged the FCA to look beyond the firms embroiled in the British Steel Pension Scheme debacle.
He said: "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 connected entities that seek to pick up where those firms left off.
"The regulators need to get their houses in order now to protect pension scheme members next time."
The regulator has already said it will carry out a data exercise across all firms holding DB transfer permissions in the near future.
Following an agreement with the regulator last year British Steel workers were asked to decide before 22 December whether to move their defined benefit pension pots to a new plan being created, BSPS II, or stay in the fund, which would be moved to the Pension Protection Fund.
Of the approximately 122,000 members about 43,000 were deferred, which meant they could transfer out altogether and become targets of unscrupulous advice firms.
Members have until 28 March to transfer their pensions out or it will be switched into one of the other two options.
It was confirmed yesterday (14 March) that BSPS 2 was given the go ahead as it reached enough members to meet the initial funding tests.
Mr Field said: "This news brings welcome certainty to the BSPS members who opted for the new scheme.
"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."
In an earlier letter to the regulator, dated 26 February, Mr Field shared concerns about the advice received by the scheme members and suggested the FCA may pass evidence on to the police.
MPs were particularly concerned about sales tactics and biases towards transferring and the features of the receiving funds, which for some included 5 per cent exit penalties.
Members were allegedly also given incomplete information about fees and had not received considered advice including their attitude to risk or circumstances.
Some claimed they had never received a suitability report.
carmen.reichman@ft.com
