Latest on the British Steel Pension Scheme ‘Debacle’

8 December 2021

With 3 more adviser firms declared in default last month, 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.

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

These claims relate to unsuitable pension transfer advice given to BSPS members.

 

How did the BSPS ‘debacle’ happen?

Three years ago, BSPS 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 scheme 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 BSPS transfer advice?

Many advisers were involved with giving BSPS transfer advice.

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

  • Acklam Financial Ltd
  • Active Wealth
  • A. W. Dallas Financial Services Ltd, trading as Portfolio Pension Consultancy
  • Bartholomew Hawkins Ltd, trading as Turris Port Wealth Management Ltd
  • Douglas Baillie Ltd & Fast Pensions
  • Estate Matters Financial Ltd, trading as Pension Matters
  • Fiducia Wealth Solutions, formerly Regen Investments Ltd
  • Hyde Financial Management Ltd, formerly Imperial Wealth Management Ltd
  • Intuitive Associates Ltd trading as Intuitive Financial Associates LLP
  • Mansion Park Ltd, trading as Mansion Park Scotland, David Head MPL, Michael J Alexander
  • Omega Financial Solutions
  • Pembrokeshire Mortgage Centre Ltd, trading as County Financial Consultants
  • S & M Hughes Limited t/a Crescent Financial
  • The Ntrust Group Ltd
  • Independent Benefit Consultancy Ltd
  • Tramway Financial Management Ltd
  • West Wales Financial Services Ltd, trading as IWA Financial Solutions, and Mike Powell Mortgages
  • Meyado Private Wealth Management London, formerly Berkshire Financial Advisers

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 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.

Need some help?

If you’re unsure about the advice you received to transfer from your BSPS pension – our initial assessment can help.

Whilst each case is individual, as mis-selling specialists we know to look for certain signs that in our experience may indicate that mis-selling has happened.

Our assessment is free and there’s absolutely no obligation to use our service if you have case. See what our clients have to say about our service on Trustpilot.

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.