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British Steelworkers could each get £50k from the FSCS

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Leading financial industry publication, FT Adviser recently reported that following a Parliamentary meeting held on 22 November 2018, the Financial Services Compensation Scheme (FSCS) is considering changing the way it calculates compensation for former members of the British Steel Pension Scheme.

If the changes are implemented, the steelworkers could receive a 20 to 30 percent increase on the amount currently being given, up to the maximum amount of compensation available under the FSCS of £50,000.

The reason for the poor advice leading to the claims was in moving from a risk-free scheme to a risky one. The majority of steel workers were represented by Active Wealth who entered liquidation in February after the firm was told to cease any pension transfer activity by the Financial Conduct Authority (FCA) months earlier.

Active Wealth were one of 10 firms that stopped giving pension transfer advice after they were identified as key players in advising members of the British Steel pension scheme to transfer out of their Defined Benefits Pensions.

The FSCS are currently dealing with a number of claims against Active Wealth, with compensation payments ranging from £4,300 up to £50,000.

TLW Solicitors’ view

Peter McKenna, TLW Solicitors Partner and experienced financial mis-selling solicitor said:

“we are pleased to see that there is potential for steelworkers to obtain further compensation from the FSCS. Our team of specialist lawyers are dealing with a substantial number of cases for pension mis-selling where clients have been advised to transfer out of a Defined Benefit Scheme.  The value of these claims can be significant, with many clients not appreciating how much they have lost until we obtain a current valuation from their previous pension provider.  This valuation gives an indication of what their pension would have been worth, had they not transferred out”

TLW Solicitors can help you

If you, a relative or friend may have been advised to transfer out of a Defined Benefits Pension Scheme (sometimes referred to as a final salary pension scheme), then please get in touch with one of the specialist financial mis-selling lawyers here at TLW Solicitors for a free, no obligation discussion.
You can either ring us on 0800 169 5925, email info@tlwsolicitors.co.uk or complete the call-back form below.

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