Following evidence on the British Steel Pension Scheme (BSPS) in Parliament last Wednesday, Mr Field has written on behalf of the Committee to the FCA expressing disappointment with the actions the FCA has taken so far over the BSPS issue. The Full text of this letter appears below as a downloadable attachment at the bottom of this story.
There has been widespread criticism of a number of introducers and IFAs who have allegedly been targeting BSPS members who have been offered the chance to transfer their BSPS pension to other providers. A number of leading Financial Planners, including Al Rush and others, have offered pro bono advice to help BSPS members in danger of transferring without careful consideration of all the options.
Mr Field has written to the FCA’s executive director of supervision Megan Butler to express his concern and that of the committee. He has said the FCA should have considered a temporary halt of transfers to assess the situation.
He wrote: “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.”
Mr Field has also expressed concerns more widely about the boom in DB transfers, the complexity of the FCA Register and proposed changes to the Senior Managers Regime and possible adverse impacts these will have on consumer protection.