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December 8, 2021

Latest on the British Steel Pension Scheme advice ‘Debacle’

Claims relating to unsuitable pension transfer advice given to British Steel Pension Scheme member has meant  3 more adviser firms were declared in default last month.

And the British Steel Pension Scheme ‘debacle’ shows no signs of ending.

According to reports, as of November 2021 the FSCS had received 1,018 complaints from former members of the BSPS.

These claims relate to unsuitable pension transfer advice given to British Steel Pension Scheme members.

For which the lifeboat scheme has paid out more than £30m in compensation.


How did the BSPS ‘debacle’ happen?

Three years ago, British Steel pension scheme members were given the choice about their pension.

They could either move their pension to a new plan – BSPS2, stick with the old scheme (which was moved as part of pension liability restructuring) or transfer out altogether.

This resulted in around 8,000 BSPS members transferring out to the collective tune of £2.8bn!

But transferring into a private pension arrangement meant many would lose out on valuable benefits already built up in the BSPS. And could mean they will be worse off in retirement.

Concerns were soon raised which resulted in the FCA intervening and a number of advice firms, involved with these transfers, stopped their advice services or went out of business.


Which Advisers were involved with British Steel pension advice?

Many advisers were involved with giving BSPS members pension transfer advice.

Here’s a list of advice firms who have been declared in default by the FSCS:

What does it mean if my adviser is in default?

If your adviser or firm has been declared in default it means the FSCS are satisfied that there are protected claims against the firm and that the firm is unlikely or unable to pay compensation.

When this happens the liability is passed on to the FSCS who will process claims for compensation.

Did you receive advice to transfer from the old British Steel Pension Scheme?

If you did, then you might be owed money.

You could be due compensation if the advice you received to transfer out of the British Steel Pension Scheme (BSPS) was unsuitable.

Even if you’re happy with your decision to transfer, you should still consider making a claim. If you don’t, you may end up with less money in retirement.

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.