FCA set to prepare advice redress scheme for British Steel transfers

Expected March 2022

Tom Ellis
clock • 1 min read

The FCA will prepare a redress scheme for former British Steel Pension Scheme (BSPS) members once its board approves the consultation documents.

The FCA has set out its expectations, through one of its 'Dear CEO' letters, that firms in the scope of a potential redress scheme should retain assets and adequate financial resources, and should not try to avoid their responsibilities. The redress scheme will be limited to BSPS transfer advice given between 1 March 2017 and 31 March 2018, which the regulator said was a "highly exceptional case". The FCA said its analysis indicated significantly more unsuitable advice (almost half at 47%) than observed in reviews of higher-risk firms in non-BSPS cases (around one-fifth at 17%). Under...

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