The Financial Services Compensation Scheme has opened the door to compensation claims against a failed financial adviser firm which arranged pension transfers for members of the British Steel Pension Scheme (BSPS).

Argent Wealth was declared in liquidation on 20 January 2022.

Argent Wealth also traded as Orchard Financial Planners and Morley James Asset Management.

Argent Wealth is the latest of several firms to be declared in default by the FSCS following compensation claims in relation to BSPS pension transfer advice.

West Wales Financial Services was one of 10 firms first asked to halt DB transfer work by the Financial Conduct Authority due to advice given to BSPS members. 

West Wales Financial Services was also trading as IWA Financial Solutions and Mike Powell Mortgages.

Wolverhampton-based Fortuna Wealth was previously known as Fidelis Wealth Management Ltd and AWG Financial Ltd.

A.W. Dallas Financial Services was forced into liquidation in August after receiving 35 Financial Ombudsman Service (FOS) complaints in relation to BSPS pension transfer advice.

The FSCS said that as of 29 November, it had received a total of 1,018 claims from former members of the BSPS who were advised to transfer out of the scheme by a firm that has since failed. 

Members of the BSPS scheme were targeted by a number of financial adviser firms seeking to transfer their pensions away from BSPS. Many of these financial adviser firms have now failed.

Around half of the claims so far have been made using FSCS's free online claims service. Many have also used friends or family members to help them with their claim.

Earlier this month, the Financial Conduct Authority sent a survey to 2,500 advice firms on its work related to the British Steel Pension Scheme (BSPS). 

Advisers have been asked to complete the form regardless of whether they advised on any BSPS pension transfers.

The survey asks advice firms how many BSPS clients they have advised, the value of any completed transfers and if they have received any complaints in relation to the advice they have given.

It also asks the 2,500 advisers if their professional indemnity insurance will cover BSPS claims.

The survey comes after the regulator launched a consultation on a redress scheme for BSPS victims in December. 

If it goes ahead the regulator would compensate 7,700 BSPS members who were encouraged to transfer their BSPS pension to a personal pension and were often poorly advised.

The cost of any redress scheme would likely run into many millions of pounds.

The redress scheme would be set up under s404 of the Financial Services and Markets Act. Subject to final approval by the regulator’s board, the FCA would aim to set up a scheme next year. Consultation on the scheme will run until March.

The watchdog says BSPS is a “highly exceptional case” with the FCA analysis revealing that 47% of the advice given was unsuitable compared to an industry average of 17% seen in typical higher-risk firms in non-BSPS cases.