The British Steel Adviser Group (BSAG) has decided to drop its legal challenge against the establishment of a redress scheme for former members of the British Steel Pension Scheme (BSPS), a decision welcomed by the FCA.
The authorities have maintained that the challenge was without merit and have vowed to vigorously defend the scheme.
The challenge has also led to BSAG agreeing to contribute significantly to the costs incurred by the authorities, who consider it was pursued inexplicably and with little intention of proceeding to trial.
The authorities have previously issued warnings and taken action against specific BSAG companies for making unsolicited proposals to former BSPS members.
The redress scheme encourages businesses to assess the transfer out advice they gave to former BSPS members and to compensate anyone who lost money as a result of inappropriate advice.
The move aims to compensate impacted members and hold businesses responsible for their conduct.
The decision by BSAG to withdraw its legal action and pay for the expenses has been welcomed by the authorities, who see it as a step towards ensuring that former members of the BSPS receive the proper compensation for any losses they may have suffered as a result of inappropriate advice.
The authorities continue to emphasise their commitment to defending the redress scheme and taking action against any firms that breach its guidelines.
