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

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 have 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 — 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.

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 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 — and ask who, in any of this, is considering whether the advice industry is being treated fairly.