Former Money Advice Service CEO Caroline Rookes has accused adviser directory Unbiased of being biased and questioned how easy the FCA website is to use in her report on the British Steel Pension Scheme.
In her independent review into the communications and support given to British Steel Pension Scheme (BSPS) members when transferring out of the scheme, Rookes said it would have been useful for the scheme’s trustees to have compiled a list of advisers willing and able to take on members’ cases.
Instead, she said, steelworkers were referred to adviser directory Unbiased and to the Financial Conduct Authority’s (FCA) website, both of which she criticised.
“Members were referred to Unbiased or the FCA website,” she wrote. “The former is not unbiased and the latter is not easy to use, nor does it make clear if the particular firm of advisers deal with DB transfers. It also includes advisers under investigation.”
As a result, Rookes recommended the newly-formed Single Financial Guidance Body and the FCA review their adviser directories and registers and “ensure they are fit for purpose”. Unbiased has been contacted for comment.
Panel of firms
Additionally, Rookes said, The Pensions Regulator should explore if there was a way to allow trustees or trade unions to identify a panel of financial advice firms members can select from.
The FCA’s register has previously received a verbal beating from Work and Pensions Select Committee chair Frank Field, who urged the regulator to create a more user-friendly directory.
It has since revealed some of the plans it has in store for the register, including displaying when a firm’s information has not been updated for a long time.
In 2017 and 2018, former BSPS members fell victim to poor advice given by unscrupulous advisers while transferring away from their defined benefit scheme. They are currently in the process of seeking compensation.