Just weeks after issuing a strongly-worded warning about “wholly unacceptable” unsolicited offers being made to former members of the British Steel Pension Scheme (BSPS) who may be entitled to redress under an FCA scheme, the regulator has identified 15 more firms it says are engaged in this misconduct. Most of them are also associated with the British Steel Action Group.

“We are concerned that this is a deliberate attempt to exclude former BSPS members from the scheme, binding them to receiving less money than they might be entitled to under the scheme,“ said the FCA.

“This type of behaviour will not be tolerated and we will take firm action to put a stop to this sharp practice.”

The FCA said that it expected that firms would treat customers fairly and clearly explain the implications of accepting an offer before the redress scheme starts. It wants firms to:

• withdraw any existing unsolicited settlement offers pending any consumer agreement;
• stop making further unsolicited offers to former BSPS members who have not made complaints; and  
• treat any pending unsolicited settlement offers as withdrawn.

Legal challenge

The British Steel Action Group, which consists of pension advisory firms, submitted a legal challenge on January 23, in order to stop or delay the redress scheme. However, the regulator promised to vigorously defend the scheme.

“This type of behaviour will not be tolerated and we will take firm action to put a stop to this sharp practice.”

The FCA

The redress scheme relates to former BSPS members who received unsuitable advice to transfer out of their pension scheme between May 26, 2016 and March 29, 2018. The FCA believes that over 1,000 former members were affected by misleading advice.