The Financial Conduct Authority (FCA) has published a newly created page for steelworkers that transferred their pension out of the British Steel Pension Scheme (BSPS).
The BSPS was restructured in 2018. Before that, many people received advice to transfer out of the defined benefit (DB) pension scheme into a personal pension scheme.
The FCA has told steelworkers they could be due compensation after receiving unsuitable advice because half of the cases the FCA reviewed were “unsuitable”.
The UK regulator added that even if they are “happy” with the decision to transfer, they “should still consider complaining” as if they don’t, they “may end up with less money in retirement” than they would have done if they hadn’t left the scheme.
Complaints
The FCA said: “You don’t need to give a specific reason for your complaint. All you have to do is ask for your advice to be reviewed as you’re unsure whether it was suitable for you.
“In 2019, we commissioned a review into DB transfer advice. Our review covered many firms who had provided advice to BSPS members.
“Where our review found concerns with the suitability of advice, we’re asking firms to carry out a wider review into their pension transfer advice, to find any cases where they provided unsuitable advice and to put this right.
“Where a firm undertakes a review, it will contact you with an offer to review the advice you received. To allow the firm to review the advice it gave you, you’ll need to confirm that you wish to be included by returning the ‘opt in’ form.
“However, we encourage all former BSPS members to consider complaining in the meantime.”
Steps
The FCA has also shared a link with former BSPS members to the template complaint letter if they want to submit a claim themselves.
If they don’t want to do that, the regulator has told steelworkers to use the Financial Ombudsman Service (Fos).
“Bringing a complaint to the ombudsman service is straightforward and won’t cost you anything,” it added. “Your adviser will be given the chance to put things right and must give you a final response within eight weeks for most types of complaints.
“If you’re unhappy with their response, or if they don’t reply, the ombudsman service can then investigate the complaint.
“If your adviser has gone out of business, you’ll need to make a claim with the Financial Services Compensation Scheme (FSCS).”
