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Recovering Compensation
Despite several financial adviser firms who advised steelworkers to transfer having gone out of business, those affected may still be able to recover compensation for their losses. Claims up to the value of £85,000 can be made through the Government-backed Financial Services Compensation Scheme (FSCS), set up to help victims of failed financial firms.
The FSCS has already compensated steelworkers following IFA advice to transfer their pensions. Claims relating to IFAs or firms still trading can be made to the Financial Ombudsman Service (FOS) or Court proceedings can be considered. However, in both cases, strict time limits apply.
Defined benefit (final salary) pension schemes are a very solid and dependable source of income for retirement and there must be an extremely good reason to transfer this into a riskier type of investment. Getting the right sort of advice on this is therefore crucial.
British Steel Pension Scheme
FCA Executive Director, Megan Butler sent a letter to affected steelworkers after the financial watchdog found that nearly half defined benefit pension transfers were inappropriate.
The letter advises steelworkers who transferred out of the British Steel Pension Scheme:
We encourage you to act, if you do nothing, you may end up with less money during your retirement than you should have done.
In the letter, she adds that following the FCA’s investigations into the suitability of the transfers:
Our findings are sufficiently concerning that we have taken the formal step of contacting you directly and encouraging you to act. You should check the advice you were given and, where appropriate, complain in order to seek any compensation you are potentially due.
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TLW Solicitors’ view on the FCA's recent advice for steelworkers
“We welcome the action taken by the FCA. At TLW we act for a number of former steelworkers who were advised, wrongly, to transfer out of the British Steel Pension Scheme. Those clients will have lost out on potentially hundreds of thousands of pounds and I would urge any former British Steel worker who has not sought advice to do so as soon as possible.”
Get in touch
Working on a ‘no win – no fee basis’, TLW’s experienced team can help you through both the FSCS and FOS compensation processes. Our clients are reassured by our knowledge and experience of FSCS and FOS procedures and, indeed, we have had claims successfully upheld for clients whose claims had previously been refused on purely technical grounds. If you are concerned about your, a friend or loved one’s transfer out of a British Steel Pension Scheme, please get in touch with TLW Solicitors today.
