The Financial Conduct Authority has written to former members of the British Steel Pension Scheme (BSPS) prompting them to make a complaint if they have not already done so as the deadline for filing a complaint is fast approaching.
Clients have a six-year window to file a complaint for unsuitable advice. The unsuitable transfers are believed to have taken place between 26 May 2016 and 29 March 2018. This means that some may have until 26 May 2022 to file their complaints or miss out on any compensation owed.
The FCA said the first step for victims is to complain to the firm that provided the advice to transfer. To check whether the advice was unsuitable, the watchdog has also set up an ‘advice checker’ portal.
The business will have up to eight weeks to respond, but the regulator has encouraged ex-BSPS members to get confirmation it received their complaint.
If victims are not satisfied with the company’s response, or if it doesn’t reply within the eight-week limit, they can then take their complaint to the Financial Ombudsman Service (FOS).
If the firm is no longer trading, they can submit a claim to the Financial Services Compensation Scheme (FSCS).
Extensions
But there are ways to extend the six-year deadline, the FCA said.
There is a second limit which allows victims to file a complaint within three years after the date they “became aware – or ought to reasonably have become aware – that you had a cause for complaint”, it said in its letter.
This means that if people who transferred out in 2016 became aware of the unsuitability of the advice received at a later date, they can extend the six-year deadline.
In exceptional circumstances, the FOS can also prolong the time period beyond the six- or three-year limits, but these are rare, the FCA added.
The regulator warned victims that there is no need to involve a claims management company or solicitor in the process, as in the event of compensation, part of the redress will have to be handed to them.
The FCA is also consulting on the creation of a redress scheme for BSPS victims which, if approved, will come into force in early 2023.
The watchdog’s letter added that people who have not filed a complaint should do it as soon as possible, as “there is a possibility that the advice you received will not be covered by the proposed scheme because too much time has passed since you received the advice”.
The advisory firms involved have already been notified of the proposed scheme, and the FCA has put in place asset retention rules to not let them dispose of any assets that may be needed to pay for victims’ compensation.
