The Work and Pensions Committee has called a special evidence session on the British Steel Pension Scheme (BSPS) as part of its inquiry into the pension freedoms, to be held on Wednesday 13 December.

As part of its inquiry, the Committee has received evidence of “questionable approaches and unsuitable advice” being given to BSPS members, in what the Committee chair Frank Field described as a “honeypot for scammers”.

The Committee will hear evidence from independent financial advisors Henry Tapper and Alistair Rush, as well as steel worker representatives and their union, BSPS trustees, the FCA and Celtic Wealth and Active Wealth.

This week, the FCA banned Active Wealth from accepting anymore clients on its pension business, and suggested it refrain from advising any of its existing pensions clients on transactions.

Letters seen by Telegraph Money show 130,000 current and former Tata Steel pension savers have been asked to choose between remaining in the existing scheme that will move into the Pension Protection Fund (PPF) or move their savings into an entirely new arrangement.

Under the new arrangement, BSPS members will have the option of switching to a new scheme, the new BSPS, or moving with the old BSPS into the PPF. The new scheme is subject to certain qualifying conditions being met.

The Committee is expected to deliver its first report from the inquiry in the coming weeks.

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