The FSCS said its investigation was at an early stage and no declaration of default against the company had yet been made.

The firm has been under investigation since 21 April.

The FSCS is investigating whether Arrow Financial Services Ltd was involved in any regulated activities and whether any of those activities may give rise to valid claims.

Arrow is one of the advice firm associated with claims related to the British Steel Pension Scheme (BSPS). 

In 2017, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension such as a Personal Pension Plan or a Self-Invested Personal Pension (SIPP). 

The FSCS said that by transferring to a private pension arrangement, they would have lost the benefits already built up in the British Steel Pension Scheme and that it may not have been realistic to achieve the same level of benefits from their new plan.

The firm was based at Grey Friars, Chester, Cheshire and ceased to be authorised after 4 October 2021. It was a regulated firm and also had Consumer Buy-to-let status. The company was authorised from 2010.

The FSCS is encouraging anyone who may have valid claims against the firm to come forward.