PFS reacts after FCA confirms plans to deliver redress to over 1,000 former British Steel Pension Scheme members
Publication date:
28 November 2022
Last updated:
25 February 2025
Author(s):
Personal Finance Society
Dr Matthew Connell, director of policy and public affairs at the Personal Finance Society, noted “We recognise that a significant number of BSPS members were given unsuitable advice, and that the FCA is right to set up a Section 404 scheme to ensure that redress is paid to those members who qualify for it, and it is right to take steps to ensure that firms have the resources to pay compensation.
“We should remember that the FCA estimates that over half of transfer cases were found to be suitable, in spite of a chaotic transition process to the new British Steel pension arrangements, in which key information was only given to members in a piecemeal way by the British Steel Pension Scheme.
“This figure is in stark contrast to FOS uphold rates for BSPS complaints that were running at 98% at the beginning of 2022.
“It is important that FOS judgements follow the approach set up by the FCA for the Section 404 scheme. If a complaint to the FOS at the end of the process is almost certain to be upheld, then ultimately consumers will end up paying a compensation bill that is not justified by the facts.”
ENDS
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.
