Defined BenefitJun 6 2018

British Steel IFA exits advice market

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British Steel IFA exits advice market

One of the firms which saw its pension transfer permission being suspended amid the British Steel saga has made a request to cease all regulatory permissions.

According to the Financial Conduct Authority (FCA) register, Retirement & Pension Planning Services Ltd, in Barnsley, made this request on 22 May, which is pending.

According to the regulator, for a firm to apply to cancel its authorisation, it is expected that it has stopped carrying on regulated activities, or is planning to do so within six months of the application.

If the application is submitted correctly and considered complete, a case officer has six months in which to make a decision.

If the application is incomplete, the watchdog decision may take up to 12 months to process.

In December, the firm submitted a voluntary requirement to the regulator and agreed to “cease all DB pension transfer business immediately”.

The firm has been approached for comment.

FTAdviser reported in April that Pembrokeshire Mortgage Centre, another firm which voluntarily gave up its permissions, has pulled out of the pension transfer market.

Members of the British Steel Pension Scheme (BSPS) had until 22 December to decide whether to move their defined benefit (DB) pension pots to a new plan being created, BSPS II, or stay in the current fund, which will be moved to the Pension Protection Fund.

The scheme has about 130,000 members of which 43,000 are deferred, which means transferring out of their pension is an option for them.

FTAdviser reported in November that several steelworkers appeared to be transferring out their pensions after being lured by cheap deals by unregulated introducer firm Celtic Wealth Management & Financial Planning, which then referred the clients to advice firm Active Wealth.

The firm, the first one to be stripped of its transfer permissions, has entered into liquidation.

In the meantime, a group of steelworkers in Port Talbot has instructed a solicitor firm to pursue a legal case against all parties involved in the pension transfer scandal.

The regulator has announced that it will be collecting data from all financial advice firms which hold pension transfer permissions during this year.

In January, the watchdog sent a letter to all firms holding pension transfer permissions revealing the red flags the regulator will be looking for when it enters advisers' offices.

maria.espadinha@ft.com