MPs have tabled a parliamentary motion thanking financial advisers for coming to the aid of Port Talbot steel workers by offering their services to them for free.
A Liberal Democrat MP tabled an Early Day Motion (EDM) in the House of Commons thanking the financial advisers behind Operation Chive (Counselling Help Information Volunteer Exchange) for the free work they did for the steel workers when their defined benefit (DB) scheme was restructured.
Stephen Lloyd, who is the Liberal Democrat MP for Eastbourne and the party’s frontbench spokesman for Work and Pensions, tabled the motion this week.
In particular, the motion asked the House of Commons to "thank the group of financial advisers who travelled from across the country to give their time and knowledge freely to the steelworkers of Port Talbot to help avoid pension mis-selling."
Steelworkers 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 existing fund, which was later moved to the Pension Protection Fund.
The scheme had about 130,000 members of which 43,000 were deferred, which meant transferring out of their pension was 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.
Since then, Active Wealth and Retirement & Pension Planning Services – another one of the 13 flagged firms - have gone into liquidation.
Advisers uniting behind Operation Chive came to the rescue and offered to help the workers reach a decision on what to do with their nest egg free of charge.
Mr Lloyd said: "It is my pleasure to table this motion, and I hope it attracts support from across the political spectrum.
"Politicians are sometimes guilty of living in a bubble, and of thinking the only good ideas come from within the bubble. But the advisers who created operation Chive displayed the power that ordinary citizens have to help solve problems in society."
The gesture has been applauded by Al Rush, principal at Rutland-based Echelon Wealthcare, who was part of the adviser group.
He said: “How nice to have something which started from nothing recognised in this way. The advisers, para-planners and administers who helped will be surprised and delighted. And so they should be.
"IFAs came from their local communities so this is IFAs doing nothing new, but the circumstances certainly were unprecedented."
He added: "All too often we only get publicity when something bad has happened so it’s really nice for these efforts to be recognised.
"The response was magnificent because we realised the harm that a number of our own had caused and this, it seems, was a pivotal moment for us.
"We prevented bad investments being made and we have pathways to recovery for others. For my part, it was a pleasure to be working with so many dynamic people all focused on one mission."
aamina.zafar@ft.com
