The Financial Conduct Authority (FCA) has expressed concerns over unsolicited settlements being offered to former members of the British Steel Pension Scheme (BSPS).
The watchdog recently published its final rules for a redress scheme which ordered firms to remediate former members of the BSPS who received “unsuitable advice” to transfer out.
It has since observed that firms Abbey Lane made offers of £100 to 82 per cent of its clients who were BSPS members and Estate Capital made offers of £300 to 83 per cent of its former BSPS members.
The FCA is concerned that such offers are significantly misaligned with the average calculated redress of £45,000 for former BSPS members who received unsuitable pension transfer advice.
The FCA said: “These unsolicited settlement offers, which are likely to be for less money than they are entitled to under the redress scheme, are a deliberate attempt to exclude former BSPS members from the redress scheme.”
The watchdog previously forecast that over 1000 consumers would receive redress from the scheme, stating that firms would have to review the advice they gave and pay redress to those who lost money due to being provided with unsuitable advice.
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