The Financial Conduct Authority (FCA) has suggested steelworkers who are concerned about the suitability of the advice they have received should stop their pension transfer.
In a note on its website updated today, the regulator suggested steelworkers who have concerns about the suitability of pensions advice they have been given should contact their scheme administrators, who may be able to stop the transfer.
It said: “The FCA is aware that some members may be in the process of transferring out of the British Steel Pension Scheme (BSPS), and could have concerns about whether the advice they received was suitable.
“The FCA along with The Pensions Regulator, which regulates the trustees and the BSPS, recommends that members who have a pending transfer and are concerned about their decision, contact the scheme administrators who may be able to stop the transfer.
“If a member has already transferred their pension and is concerned about the advice they have received, they should make a complaint to the firm and, if they are still not happy, speak to the Financial Ombudsman Service.”
Some 130,000 members of the BSPS have just three more days to decide whether to move their defined benefit pension to a new scheme before the 22 December deadline. Should they choose to do so, they then have until 26 January 2018 to transfer.
Significant information gathering
The FCA said it had undertaken “significant information gathering” in order to identify firms that have been most active in advising consumers to transfer out of the BSPS.
So far it has gathered information from 50 financial advice firms, 12 self-invested personal pension operators, and the BSPS scheme administrators. Based on that data, it has visited seven advice firms and requested files from a further four.
As a result of its work, Active Wealth, Mansion House, Pembrokeshire Mortgage, Retirement & Planning Services, Vintage Investment Services and West Wales Financial Services have all agreed immediately to cease defined benefit business.
The FCA this week received criticism from MP and chair of the Work and Pensions Select Committee Frank Field, who wrote a letter to the regulator describing its handling of the British Steel workers as “grossly inadequate”.
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