The FCA has stopped three IFA firms from delivering advice on transferring out of the British Steel pension scheme and is visiting another six firms this week.
The move is part of a broader clampdown on advice given to members of the British Steel Pension Scheme (BSPS), which is currently being restructured, prompting many members to consider if they should transfer out to a personal pension.
In response to concerns about the financial advice BSPS members were receiving, the FCA held four seminars in Swansea and Doncaster for advisers who specialise in pension transfers, which were attended by 151 RIs. The FCA also wrote to 148 authorised financial advisers in these locations explaining its expectations when advisers refer their clients to pension specialists.
The FCA’s investigation has now gathering information from 50 financial advice firms, 12 Sipp operators, and the BSPS scheme administrators. It has visited seven advice firms and requested files from a further four. The regulator says: “As a result of this work three firms have stopped advising consumers on pension transfers”.
The FCA plans to visit a further six firms this week.
The FCA says will continue its previously planned work on DB transfer advice in the wider market. Last week it sent out a questionnaire to 45 firms as part of the next phase of this work.
In October this year the FCA published an update on its work in this area.
