Following evidence on the British Steel Pension Scheme (BSPS) in Parliament last Wednesday, the Work and Pensions Committee writes to the Financial Conduct Authority (FCA) with concerns over the action it has taken so far regarding the Scheme.
Action needed to protect consumers
Rt Hon Frank Field MP, Chair of the Committee, said:
"While the action the FCA has finally taken to protect members of the BSPS is welcome, I remain concerned that its overall approach has been grossly inadequate. The FCA is a consumer protection body. It would behove them to stop pussy-footing around and start protecting consumers.
Transferring out of a gold plated final salary pension is generally a terrible idea, except in very particular circumstances, and firms routinely advising people to take this route should be shut out immediately.
It shouldn't have taken the Committee squeezing it out of them for the FCA to make those names public, and otherwise it would take a degree and orienteering skills to figure out which firms they were. The FCA has been slow and reactive where these sharp practitioners and parasites moved straight in months ago.
If the FCA isn’t equipped to pick them out now it should just stop transfers happening while it gets its house in order."