The Financial Conduct Authority (FCA) has imposed restrictions on KBFS Financial Limited following concerns over its failure to pay redress to former members of the British Steel Pension Scheme.

The regulator said the Weymouth-based advice firm has failed to engage with it in an open and cooperative way.

KBFS (FRN: 831504) did not provide the regulator with information requested about its financial position and Financial Ombudsman Service awards it was due to pay out.

The regulator said it appears KBFS has failed to pay the redress awarded by the FOS in relation to unsuitable pension-transfer advice given to 5 clients with a defined-benefit occupational pension scheme with British Steel.

The restrictions on KBFS include preventing it from carrying on any regulated activities and restricting access to its assets.

The restriction has been placed on KBFS since 24 October.

In recent months a number of financial advisers and firms have been sanctioned over their actions over BSPS pension transfers.

Last month Swansea financial adviser Simon Hughes was banned by the FCA and made to pay £158,600 redress for “negligent” pension advice which led to £8m compensation being paid to his BSPS-member clients.

In September the FCA banned Darren Reynolds and Andrew Deeney of Active Wealth Limited for dishonest pension transfer advice. Mr Reynolds advised 150 BSPS members to put their money into investments that the regulator said he knew were not suitable for them.

Forty financial advice firms hit by BSPS claims have so far failed with a further seven under investigation, latest FSCS data shows.

Claims relating to the 40 advice firms which went out of business before 28 February are now being handled by the Financial Services Compensation Scheme.

Compensation costs are expected to run into the millions as many of the advice firms have failed.

Many advisers connected to BSPS failed firms have been banned or fined or both.