British Steel  

FCA to consult on BSPS redress scheme

Board minutes from in July showed discussions were held around the available options for securing redress for BSPS members.

But the FCA board decided against it at the time saying it didn't have "sufficient information" but the matter was still under review.

Meanwhile the National Audit Office is due to carry out an investigation into the FCA’s work on BSPS, which is scheduled for Spring 2022.

The BSPS case

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 a number of advice firms – key players in the debacle – stopping their transfer advice service, while others went out of business.

Over recent months, the FCA, along with the Financial Ombudsman Service, the Financial Services Compensation Scheme, and MoneyHelper, have travelled to Swansea and Scunthorpe to hold one to one sessions with steelworkers to discuss their situations and offer help.

The regulator said DB advice firm numbers have shrunk from 3,000 in 2018 to 1,200 now.

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