Financial advice market failed to protect BSPS members - National Audit Office investigation

47% of advice deemed unsuitable

Ayesha Venkataraman
clock • 6 min read

Many British Steel Pension Scheme (BSPS) members suffered significant financial losses after transferring out of the scheme, due to unsuitable advice by the regulated financial advice market that failed to protect them, according to a report from the National Audit Office (NAO).

A report on the findings of NAO's investigation into the British Steel scandal also highlighted the ways in which many members had failed to receive full compensation. It said: "The redress arrangements have not compensated all individuals fully, the costs of redress have impacted on the wider financial services industry and the number of firms providing DB pensions transfer advice has more than halved. "This case demonstrates the costs and difficulties of remedying failures in financial services, the importance of preventing problems occurring in the first place and the inadequacy of...

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