The Financial Conduct Authority (FCA) failed to protect British Steel Pension Scheme (BSPS) members from “unscrupulous financial advisers” who were financially incentivised to provide unsuitable advice, and the regulator was “behind the curve” in its response, according to a report by the Public Accounts Committee (PAC).
A report on the findings of PAC's investigation into the British Steel scandal, published on Thursday 21 July, looked into the regulator's handling of it, the proposed redress scheme, wider issues within the regulation of financial advice and the FCA's preparedness for future risks in the advice market. In April 2017, around 8,000 British Steel workers (18% of eligible members) transferred their benefits away from the company's defined benefit (DB) scheme, representing £2.8bn of the pension fund. The PAC report hinged on an earlier National Audit Office (NAO) investigation into the scand...
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