FCA Considering British Steel’s Pension Relief Plan

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The Financial Conduct Authority will discuss setting up a compensation scheme for thousands of UK steel workers facing retirement losses after being caught up in a multi-million pound pension scandal.

The move will take place in October after the Board of Audit, a parliamentary spending watch. Said It will investigate the FCA on the handling of cases in the UK Steel Pension System (BSPS) dating back to 2017.

The NAO investigation is the first such investigation into UK financial regulators, as the failure and delay of FCA regulation of Independent Financial Advisers (IFA) mistakenly gives thousands of former members of BSPS. Following the accusations from the Welsh MP that it was the cause of the advice. Raise your valuable guaranteed pension.

The FCA said on Wednesday that it would begin collecting evidence and would begin discussions by the end of March. Analysis revealed that nearly half of BSPS members were advised on “inappropriate” pension transfers, which is described as a “very exceptional case.”

The FCA is configured to require that the bailout system review the advice provided to clients by the IFA involved in the UK steel pension transfer and provide compensation if it turns out to be inadequate. Said. This requirement eliminates the need for affected BSPS members to file a complaint with the FCA to confirm the case.

The FCA has previously urged up to 7,700 former British Steel scheme members to review the pension transfer recommendations they received and complain if they have any concerns.

Regulators need to warn the IFA in a letter Wednesday and be prepared to cover the cost of bailouts rather than selling assets in anticipation of regulatory action. He said it would act if any of them tried to avoid their responsibilities.

Financial regulators in September Traveled to Port Talbot To meet steel workers suspected of being given bad pension advice that may be covered, along with financial ombudsman services and financial services compensation schemes.

A mis-sale scandal occurred after pension regulators allowed the sponsor employer Tata Steel to spin out BSPS in 2017. As part of the restructuring, about 8,000 steel workers have transferred their funds to higher-risk arrangements. For amounts worth £ 30,000 or more. The 2018 Labor Pension Commission said many were vulnerable to malicious financial advisors.

Alrush, an independent financial adviser who campaigned for the relief of steel workers on Wednesday, said: Things are moving slowly, but they are moving. That is welcome. “

“The economic loss of BSPS has reached hundreds of millions, and it is retirement income that these non-wealthy steel communities need to be desperately retained and prevented from being sucked up,” he added.

Regulators imposed the first fine in August on an adviser who stated he was “very incompetent” in recommending the transfer of severance savings to members of the UK steel pension system.

FCA Considering British Steel’s Pension Relief Plan

Source link FCA Considering British Steel’s Pension Relief Plan

The post FCA Considering British Steel’s Pension Relief Plan appeared first on Eminetra.

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