The FCA has responded robustly to complaints about the time it took to provide redress to victims of the British Steel Pension Scheme (BSPS) scandal.

It said it, “took appropriate regulatory action based on the information available at the time.”

The regulator said it had received a number of complaints that its response to events in relation to BSPS was insufficient and failed to adequately protect steelworkers.

It investigated the complaints and concluded that, “while there have been lessons for us to learn, for example, in strengthening links with partners, such as the Pensions Regulator” it took appropriate regulatory action.

Yesterday it published its main decision letter, which has been shared with the complainants. In it the FCA apologised for the time taken to respond to the complaints and offered £150 as compensation for the delay.

The FCA said it had published the letter: “Given the very clear public interest in this issue, and to support our accountability to the public and to Parliament.”

It said it had “taken the unusual decision to publish our main decision letter so people can read for themselves how we reached the conclusions we have.”

In the letter the regulator stated: “The FCA has sought to learn lessons following [independent reviews and external scrutiny] and has accepted several recommendations. We are sorry for the length of time it has taken to respond to your complaint. The allegations raised were complex and covered a significant period of time. It is important that we investigated matters fully and thoroughly. We acknowledge the delay and offer each complainant party to this complaint an ex-gratia payment of £150 in relation to this delay.”

It added that complaints are a valuable source of feedback which help it improve and learn, and that it takes all complaints seriously. The FCA said it has sought to learn lessons as a result of events relating to BSPS and accepted a number of recommendations made following the significant public scrutiny and independent reviews into BSPS, for example by the National Audit Office.

In addition, it said it has identified additional learning as a result of this complaints investigation.

The FCA said separately in a statement: “Members of the BSPS worked hard during their employment and have experienced significant worry regarding their financial security in retirement. We found that many BSPS members suffered financial loss after being advised to transfer out of the scheme. Our evidence suggests 46% of all transfers were unsuitable.

“As a result, in February 2023, we implemented a redress scheme for BSPS members who had received advice. Under this, financial advisers must check whether people who transferred out of the pension scheme were given the wrong advice. Where wrong advice was given, they must calculate if redress is due, with the aim of putting people back in the financial position they would have been in at retirement had they stayed in the BSPS. 

“The FCA has also undertaken unprecedented enforcement activity against those who delivered the poor advice. To date, this has resulted in 15 bans for individuals and fines or payments to the Financial Services Compensation Scheme (FSCS) totalling £8.87m, though some matters have been referred to the Upper Tribunal.”