The British Steel Action Group has called on adviser Al Rush and law firm Clarke Willmott to join proceedings against the regulator over its redress scheme for British Steel Pension Scheme members.
Law firm FS Legal, which is representing a number of IFAs, called on the Financial Conduct Authority last year to re-open its consultation into compensation for BSPS members claiming poorly performing bond markets have caused the value of any redress to drop.
FS Legal represents the British Steel Action Group, which is made up of advice firms facing redress bills for DB transfer advice.
The law firm said: “All firms who advised on the British Steel Pension Scheme 'Time to Choose' exercise want a swift resolution to this saga.
“The FCA have taken an eternity to introduce a scheme, which the advisory firms believe to be unfair and unreasonable. Firms do not issue claims about their regulator lightly, they do so because they have no alternative.
“The other side of this matter is the steelworkers who feel they have been very badly let down.”
Gareth Fatchett, solicitor and partner at FS Legal, told FTAdviser there is a court hearing date of April 25 to 27, which will allow claimants' “most vociferous representatives” to join the claim and make their case.
The BSAG issued a challenge to the two main claimant groups run by Al Rush and Philippa Hann of Clarke Wilmott Solicitors to join the proceedings.
“Claimants are crying foul and want the FCA and the Treasury to fund extra redress payments,” Fatchett said.
“They will not achieve this by standing on the side lines, looking in.”
However, Damian Pitts, senior associate at Clarke Willmott, said it does not speak for all steelworkers.
“We act for a significant number of steelworkers in making claims via the Fos or FSCS, but as our clients have already made (or about to make) their claims they are excluded from the FCA’s redress scheme.
“The action brought by BSAG relates solely to a challenge to the redress scheme and, therefore, as none of our clients will be covered by the redress scheme, we do not consider we have locus standi to join the proceedings.”
Meanwhile, Rush said campaigners for justice for steelworkers were advocating FCA intervention almost six years ago.
“The one thing that Mr Fatchett and I will agree on is that the FCA has failed conspicuously - if Andrew Bailey had intervened in a timely and concise manner in 2017, Gareth would not have had to make an application to the courts on behalf of scores of clients,” he said.
“Nobody wins in this, prevention would have been so much better than cure.”
Rush said campaigners for steelworkers will continue to monitor the situation and consider all options.
Last month, the FCA urged some former BSPS members to make a complaint to the Fos amid a legal challenge made against the redress scheme
At the time, the FCA said it was confident its decision to set up a redress scheme is appropriate and that it will “vigorously defend it”.
“In making our decision we considered extensive stakeholder feedback from the consultation process,” the regulator said in a statement.
FTAdviser understands that the regulator has now submitted evidence in support of the decision it took to implement the scheme and it will now be up to FS Legal to submit evidence on behalf of clients as to why the decision should be overturned.
The FCA said: “We introduced a redress scheme to put steelworkers who received unsuitable advice back in the position they would have been had they not transferred out of BSPS.
“Given the high levels of unsuitable advice we found in our file reviews it is important that steelworkers have their advice reviewed and receive redress if they suffered a loss due to unsuitable advice.
“We are confident that our decision to set up the scheme is appropriate.
“Unfortunately, the legal challenge has the potential to delay steelworkers receiving appropriate redress. It would not be appropriate to comment on the detail of matters which are subject to legal proceedings.”
Elsewhere, last week, the FCA identified more firms that it believes are making unsolicited offers to former BSPS members who have not made complaints.
In January, the FCA said it was aware of four firms who are associated with the BSAG that may be engaged in this conduct.
However, since then, the regulator said it has identified 15 firms who are engaged in the misconduct.
sonia.rach@ft.com
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