The Financial Services Compensation Scheme (FSCS) announced that it is currently investigating Cheshire-based Arrow Financial Services UK Ltd.
The company trades as Arrow Asset Management and was a financial planning firm.
According to the FSCS, the firm is reportedly associated with claims regarding pension transfer advice given to members of the British Steel Pension Scheme (BSPS).
The firm has not been regulated by the Financial Conduct Authority (FCA) since 2021. It was dissolved in June 2022 after it entered voluntary liquidation in 2020, according to Companies House.
The FSCS said: “In 2017, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension, known as a personal pension plan or a self-invested personal pension (Sipp).
“By transferring to a private pension arrangement, they would have lost the benefits already built up in the British Steel Pension Scheme. It may not have been realistic to achieve the same level of benefits from their new plan. The advice they received may not have been the best advice for them.”
There are currently seven firms under investigation with the FSCS since the start of the year, this includes County Durham-based Green Gem Financial, Bridgend-based Wealthmasters Financial Management, Herefordshire-based Haich & Associates (UK) Ltd, wealth management firm WealthTek and British Steel advice firms DC Financial Ltd and Abbey Lane Financial Associates Ltd.
