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April 12, 2024

FSCS investigating two firms connected to British Steel Pension claims

The Financial Services Compensation Scheme (FSCS) has placed two firms – KBFS Financial Ltd and Kathryn Brown – under investigation.

It announced on 9 April that it is investigating these firms which are also associated with British Steel Pension claims.

Here’s what we know so far, about these firms and the investigations…

KBFS Financial Ltd

KBFS Financial Ltd had its FCA authorisation cancelled by the Regulator in February 2024.

The reason for this, according to the FCA notice, is that the Authority considers KBFS “is carrying on no regulated activities to which its Part 4A permission relates.”

As a result of this action KBFS Financial Ltd is no longer an authorised firm for the purposes of the Financial Services and Markets Act 2000. And as such may not carry out regulated activities which fall within the scope of the Act.

In October 2023 the FCA placed restrictions on the firm. Why?  Over concerns that the firm had failed to pay compensation awarded to clients by the Financial Ombudsman Service.

The clients involved were former members of the British Steel Pension Scheme (BSPS). They had complained about the pension transfer advice given by KBFS Financial Ltd.

The FSCS is now considering claims against KBFS Financial Ltd which will be assessed on a case-by-case basis. As part of its investigations, the FSCS will consider whether the firm can meet claims made against it.

Kathryn Brown

Kathryn Brown is no longer authorised by the FCA and according to its register entry, it hasn’t been since July 2019.

The FSCS says it is now considering claims against the firm which will be assessed on a case-by-case basis. This is to determine if they are eligible for compensation.

British Steel Pension Claims

KBFS Financial Ltd and Kathryn Brown are both associated with claims regarding the British Steel Pension Scheme (BSPS). As well as claims about defined benefit transfer advice which relate to other occupational pension schemes.

The FCA set up a redress scheme for people who were advised to transfer out of the BSPS between 26 May 2016 and 29 March 2018, which started in February 2023.

As KBFS Financial Ltd has gone out of business, it won’t be able to continue to take part in the redress scheme.

FSCS Claims KBFS Financial Ltd and Kathryn Brown

The FSCS is now investigating KBFS Financial Ltd and Kathryn Brown to see if there are eligible claims.

The firms are connected and the FSCS issued the following advice to clients who think they may have a complaint.

If you received advice prior to 1 July 2019, then the advice was likely given by the firm Kathryn Brown (FRN 670840). And your claim should be made against this firm.

If you received advice after 1 July 2019, the FSCS is now considering claims against KBFS Financial Ltd.

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.