Edesia Law responds to FCA consultation paper on proposed British Steel redress scheme

Edesia Law responds to FCA consultation paper on proposed British Steel redress scheme 30 Jun

Today marked the closing date for responses to the FCA Consultation Paper CP22/6 which proposes a redress scheme under s.404 of the Financial Services and Markets Act 2000 for the benefit of former members of the British Steel Pension Scheme (“BSPS”).

We have represented a large number of IFAs facing complaints or regulatory action relating to BSPS and defended hundreds of BSPS complaints or negative FCA findings. In common with those firms, we are very concerned at the disparity between the views of experienced and specialist financial advisers and Pension Transfer Specialists – to the effect that, while a limited number of firms gave unsuitable transfer advice the majority did not – and the views of the FCA, the Financial Ombudsman Service and the Financial Services Compensation Scheme – namely that a significant proportion of cases were unsuitable (or, in the case of FOS, almost every case it sees).

It is undoubtedly the case that a few firms caused harm and loss to a number of former BSPS scheme members. However, faced with criticism of its own actions and political pressure, it appears that the FCA has taken the easy option (like it did previously with its Arch Cru redress scheme) of placing the blame and the clean up bill at the feet of the adviser community. This is wholly unfair and we support the efforts of all firms seeking to push back on these proposals, from which we hope the FCA will row back. However, if its previous “consultations”, such as over the redress limits at FOS, are anything to go by, that hope is likely to be a faint one and it begs the question of who, in any of this, is considering whether the advice industry is being treated fairly?

A link to our full response appears HERE