FCA to meet British Steel members

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FCA to meet British Steel members

The Financial Conduct Authority has confirmed it will meet with British Steel Pension Scheme members in Port Talbot later this week. 

The financial regulator is set to host a series of events for steelworkers "concerned about the advice" they received when transferring their pension out of the scheme which are open to all members, former members and their family members. 

Members of the BSPS were asked to decide what to do with their pensions as part of a restructuring process in 2017 and as a result about 8,000 members transferred out of the old scheme by October last year, with transfers collectively worth billions of pounds.

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

The FCA will host its first events for members on June 14 at the Princess Royal Theatre in Port Talbot, with a morning session starting at 10:30 and an afternoon session at 13:00. 

The regulator is expected to address the financial advice process, including what information BSPS members should have been asked for by their adviser when making a recommendation and what advisers should have done to demonstrate the suitability of their recommendation.

The FCA stated the sessions will cover what services advisers may continue to provide to members, including regular reviews of investments.

The Financial Ombudsman Service, The Pension Regulator and The Money and Pensions Service will also be attending the events. 

Megan Butler, executive director of supervision of wholesale and specialists at the FCA, said: "We want to help those BSPS members who are worried about the advice they were given

"We encourage all of those impacted to attend the events which will provide a lot of the information BSPS members need to allow them make a decision about whether to complain about the advice they received."

Last month Labour MP Nick Smith confirmed the regulator was currently investigating 30 unnamed individuals and firms for poor pension transfer advice and scams, in an attempt to combat rogue advisers.

Mr Smith also revealed enforcement action had been taken against 15 businesses and individuals for "pensions misconduct" by the FCA in the last five years.


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