‘A 2nd advice firm involved with the British Steel sage, has gone into liquidation – were you mis-sold?’
Financial advisers persuaded more than 800 steelworkers to give up their guaranteed pensions before the Financial Conduct Authority halted their activities over mis-selling concerns, the regulator has revealed. The disclosure from Andrew Bailey, chief executive of the FCA, comes nearly a year into the regulator’s probe into concerns that thousands of Tata steelworkers may have been poorly advised to give up valuable guaranteed pensions.
It is the first time the FCA has given an indication of the scale of potential pension mis-selling by individual firms to members of the British Steel Pension Scheme (BSPS). The regulator said that nearly half of transfers looked at in its mis-selling probe were processed by 10 firms. Nick Smith, MP for Blaenau Gwent, called for the regulator “to do better”.
About 40,000 members of the British Steel Pension Scheme, the Tata Steel retirement fund, had the choice to trade their guaranteed pensions for a cash lump sum and transfer to a riskier plan as the scheme was restructured. To date there have been 8,000 transfers worth about £2.8bn. But last year, as transfers from the British Steel scheme ramped up, the FCA intervened to halt the activities of advice firms due to concerns that dubious advisers, incentivised by commissions and high fees, were descending on steel towns, such as Port Talbot in Wales, and enticing BSPS members to transfer their pensions.
British Steel is but one of hundreds of schemes designed to leech the pensions from hard working but misinformed Savers.
If you have reason to believe you have been misinformed or pressured into making risky investments please get in touch with Claiming 4Uto find out what we can do to help you reclaim your pension fund.