FCA to consult on British Steel redress amid probe into watchdog’s handling of debacle
The Financial Conduct Authority (FCA) is set to consult on a redress scheme for those who invested in the British Steel Pension Scheme (BSPS) – which could finally see members get their cash back.
The consult is expected to end by March next year, the FCA added, as they gather further evidence and engage with shareholders.
In a letter send today, the FCA has outlined its expectation that firms which will have to repay former investors “should retain assets and should not try to avoid their responsibilities”.
The financial watchdog also warned it will take action if a firm attempts to avoid its redress liabilities.
However, it cautioned that any redress would be dependent on the investors’ BSPS transfer advice. The FCA further advised former BSPS members to continue to check whether they received unsuitable advice.
It follows the National Audit Office (NAO) launching a probe into the FCA’s handling of the British Steel transfer debacle in October.
While investigation is still in its early stages, the audit watchdog said that it aims to publish its findings in Spring next year.
The 2017 scandal involved 7,700 BSPS members receiving advice to take their funds out of the pensions scheme – which they took and lost “significant sums of money as a result,” the NAO said in a statement at the time.
The NAO’s investigation plans to support steelworkers who may be entitled to financial redress and work out how much compensation they could receive.
MPs had accused the FCA at the beginning of the year of being “unfit for purpose” over its inability to help wronged consumers in the wake of the scandal.