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Lawmakers Slam Unfit FCA Over Pension Debacle Response
Law360, London (January 22, 2021, 12:53 PM GMT) Two lawmakers have accused the Financial Conduct Authority of being stifled by bureaucratic inertia over its response to a major pensions transfer scandal and should establish a specialist unit for responding more rapidly to complaints.
Steelworkers are seeking compensation of up to £375 million ($512 million) over a pensions transfer scandal, two lawmakers have told the City watchdog. (iStock) Labour politicians Nick Smith and Stephen Kinnock have written to the new FCA chief executive, Nikhil Rathi, to say that the City watchdog lacks the vision to be able to respond to consumer scandals such as that surrounding the British Steel Pension.
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ays after being attacked for its failings over London Capital & Finance, the Financial Conduct Authority is facing criticism from British Steel workers wrongly recommended to transfer out of their workplace pensions by commission-hungry financial advisers.
Three years on from the scandal that saw financial advisers swoop on workers in Port Talbot and Scunthorpe, many have still not received the compensation to which they are entitled.
Workers and their MPs blame the FCA, particularly as there are few signs of prosecutions despite it finding that 80% of workers were wrongly advised to transfer when British Steel owner Tata changed their £15 billion pension fund.