Pensions - Articles - Concerns remain over British Steel Consumer Redress Scheme


PIMFA has welcomed the publication of the Financial Conduct Authority's (FCA) policy statement regarding compensation for those enrolled in the British Steel Pension Scheme (BSPS). But PIMFA remains concerned about the total cost of the proposed compensation scheme and construction of the proposed tool to assess the adequacy of the advice provided in the past.

 Simon Harrington, Head of Public Affairs at PIMFA, comments: “The publication of this policy statement should provide welcome clarity for those who were wrongly advised to transfer out their guaranteed benefits. It is right that those people are compensated and are given clear routes to ensuring they are done so in an efficient manner. We think this policy statement broadly achieves that.

 “While clarity for consumers is important, we anticipate that a number of firms will be left uncertain of their exposure to this scheme. It is regrettable that the Financial Conduct Authority (FCA) has not addressed valid concerns that have been raised by the industry generally. Those concerns centre on the construction of the Defined Benefit Advice Assessment Tool (DBAAT) and the ability of Financial Ombudsman Service (FOS) to adequately adjudicate cases in a manner which gives due consideration to the technicalities and intricacies of pension transfer advice.

 “We also continue to retain concerns that the total cost of the scheme – and associated claims upheld once advice has been found to be suitable by the firms - will be significantly higher than set out in the FCA’s revised cost benefit analysis. We would encourage the FCA to report against this in order to inform future cost benefit analyses and stress test the assumptions they currently have on this market in particular."
  

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.