MPs criticise FCA after slow response to British Steel victims letter professionaladviser.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from professionaladviser.com Daily Mail and Mail on Sunday newspapers.
Equilibrium FP partner believes an inconsistent ‘flow of work’ can leave industry in ‘danger zone’
The defined benefit (DB) pension transfer market has been one of the most contentious areas within the financial advice sector over last few years.
The Financial Conduct Authority (FCA) has implemented changes and initiatives in a bid to fix issues surrounding the British Steel Pension Scheme (BSPS) scandal, including the ban on contingent charging and its newly established DB advice assessment tool (Dbatt).
But, as the FCA cracks down on the market, a large rise in regulatory fees and levies, as well as extreme increases in professional indemnity (PI) insurance premiums, has left many firms with no choice but to exit the DB sector.
STEELWORKERS who lost their hard-earned pensions following bad financial advice are being let down by bureaucratic inertia, say campaigners calling for renewed support. Two Welsh MPs - including Blaenau Gwent s Nick Smith - have written to the new head of the Financial Conduct Authority (FCA), urging him to take a leading role in holding to account those responsible for the steelworkers plight. More than 7,000 steelworkers are victims of the British Steel Pensions Scheme (BSPS) scandal. Three years ago, steelworkers were asked to make a final decision on their pension options. But Mr Smith said many workers were unsure of their options and turned to financial advisers for advice - leading to pension sharks fleecing many hardworking steelworkers, he said. The compensation owed to the victims is estimated at £250-375 million.
MPs in pension scandal constituencies declare Financial Conduct Authority “unfit for purpose” Jim Armitage
MPs representing victims of pension mis-selling today accused the Financial Conduct Authority of being “not fit for purpose” over its failure to help consumers.
Nick Smith and Stephen Kinnock, MPs whose constituents saw their life savings damaged when rogue advisers persuaded them to transfer out of the British Steel Pension Scheme, declared the FCA was characterised by organisational drift and bureaucratic inertia.”
In a letter to new FCA chief Nikhil Rathi, they wrote: “Despite our multiple and ongoing attempts to prompt action, the FCA continues to be City facing and lacks sufficient vision to tackle the issues facing consumers.”