101 former BSPS advisers in scope of FCA emergency asset retention rules

A total of 101 firms that provided pension transfer advice to former British Steel Pension Scheme (BSPS) members are in the scope of emergency asset retention rules, the Financial Conduct Authority (FCA) has revealed.

The FCA used emergency powers in April 2022 to introduce new rules, without consultation, to prevent financial advice firms that advised members of the BSPS from disposing of assets to avoid paying compensation.

The rules, which came into force on 27 April and will continue until 31 January 2023, apply to firms who provided pension transfer advice between 26 May 2016 to 29 March 2018, unless they are specifically excluded.

Under the requirements, firms had until 27 May 2022 to complete an initial financial resilience assessment (FRA) to establish whether they had sufficient financial resources to meet the potential costs of the BSPS redress.

The FCA has now confirmed that an initial FRA was completed by all 101 in scope firms and, as of August, 26 of these firms confirmed they failed the assessment and so are subject to an asset restriction.

The FCA said that the emergency rules “increase the likelihood that former BSPS members will get compensation directly from firms for any losses they suffered from being given unsuitable pension transfer advice.”

The regulator also confirmed that it will continue "actively monitoring" the financial stability of firms who gave advice to BSPS members, having previously outlined its expectations for those firms impacted in a Dear CEO letter in March 2022.

The FCA previously consulted on plans for a compensation scheme worth £71.2m for former members of the BSPS, with a consultation on the methodology used to calculate redress for consumers who suffered financial loss from transferring following non-compliant advice currently underway.

The regulator has faced continued scrutiny for its handling of the BSPS, with a recent report from the Public Accounts Committee suggesting that the FCA was “consistently behind the curve” in responding to unsuitable pension transfer advice.

    Share Story:

Recent Stories


Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Global equities and transition investing
Pensions Age editor, Laura Blows speaks to Royal London Asset Management equity investment director, Jonathan Price, about transitioning to sustainable investments within global equities
Cost transparency
Pensions Age editor, Laura Blows, discusses investment cost transparency and savings with Aon’s Neil Smith and Chris Hawksworth. Please click here for an edited write-up of the video

Advertisement Advertisement Advertisement