British Steel Mar 4 2022

Two advice firms fail as one faces 'majority' BSPS claims

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Two advice firms fail as one faces 'majority' BSPS claims

The Financial Services Compensation Scheme has declared two advice firms in default, one of which is facing 41 claims and previously advised on British Steel pension transfers.

All 41 claims levied by former clients of John Dyer Ltd, which the FSCS said advised on BSPS pension transfer, are in progress.

An FSCS spokesperson told FTAdviser: “These are all pension transfers. Though we can’t give you an exact figure on how many of these are BSPS claims, it is the majority.”

Shareholders of John Dyer were paid £253,329.37 between January 17, 2019 and January 16, 2020, according to statements uploaded to Companies House.

The other advice firm, SDSC Ltd - formerly SJL Wealth Management Ltd - has attracted a lesser two claims so far. Both relate to pension transfers but neither are linked to BSPS, according to the FSCS.

So far, the FSCS has paid out more than £36.5mn in compensation to BSPS members as of January 25.

Based on the current data, the FSCS has said its uphold rate for BSPS claims is 90 per cent. But the average length of time taken to resolve a complaint is currently 111 days.

Last month, Caroline Rainbird, chief executive of the FSCS, said there were four firms expected to fail in the “coming weeks” which were on the FSCS’s watchlist and were known to have advised on BSPS transfers, suggesting John Dyer is one of a small handful to be announced imminently.

The FSCS said the Financial Conduct Authority have written twice to all those it believes might have been subject to mis-selling. 

“We will continue to see if there are other opportunities to reach out to steelworkers, including working with local MPs – like yourself, industry representatives, engaging at a local level in the community – with events such as the ‘boots on the ground’ in Swansea and Scunthorpe, social media, tailored documents, and other means,” Rainbird said at the time.

ruby.hinchliffe@ft.com