The Financial Conduct Authority has completed around 30 investigations into British Steel advisers and firms.
In an update the regulator said that it is working to reach final decisions on what sanctions are appropriate where it found misconduct.
This comes on the back of its ban and fine of adviser Mark Abley of County Capital Wealth Management Ltd (in liquidation) (CCWM).
Abley was fined £106,000 to fund the compensation of clients who he advised to transfer out of their defined benefit (DB) schemes.
In November 2022 the FCA announced a redress scheme for consumers who had transferred out of the British Steel Pension Scheme (BSPS).
The regulator has set out an expected timeline of when and how people should receive their compensation.
People should receive an offer of payment from an adviser and/or advice firm and have three months to accept.
Once they accept the adviser has 28 days to pay but this can take longer if the firm has gone bust and is going through the Financial Services Compensation Scheme.
Alternatively if a person rejects the offer and complains to the Financial Services Ombudsman compensation will take longer.
If an individual has requested a lump sum payment, this should happen by 28 December 2023.
Also if they have requested a payment into their pension, this should happen by 28 February 2024.
According to the FCA firms had already paid £35m to customers due to its actions before redress scheme was set up.
The Financial Services Compensation Scheme (FSCS) has also paid out over £69m.
The FCA added: “We expect consumers to receive a further £49m through the redress scheme. What’s more, where possible, we will not impose fines so that redress is paid to the FSCS. This helps ensure those responsible pay towards the redress owed.”
It also gave more information on the two types of misconduct in BSPS cases.
In most cases, firms or individuals have breached the principle that they must conduct their business with “due skill, care and diligence”.
This means that advisers have shown a significant lack of competence in their advice.
In more serious cases, firms or advisers have breached the principle that they must conduct their business “with integrity”.
This means that they have been reckless or dishonest in how they have dealt with consumers and/or the FCA.
FCA joint executive director of enforcement Therese Chambers said: “Both our consumer redress scheme and enforcement outcomes are milestones in addressing the harm caused by bad advice in relation to BSPS. There is more work to do but they go a long way to putting steelworkers back in the position they would have been – as well as holding people and firms to account for poor advice.
“We are continuing to focus on completing any remaining enforcement cases and making sure the redress scheme works as intended.”
This table lists enforcement action taken to date and will be updated as the FCA continues its work.
| Name | Outcome | Publication |
|---|---|---|
| Pembrokeshire Mortgage Centre Limited (in liquidation) | Financial penalty of £2.4m | Final Notice |
| Lighthouse Advisory Services Limited | Public censure | Final Notice |
|
Geoffrey Edward Armin Retirement and Pension Planning Services Limited (in liquidation) |
Financial penalty of £1.3m and prohibition Mr Armin has referred this matter to the Upper Tribunal |
Decision Notice |
|
Mark Antony Abley County Capital Wealth Management Limited (in liquidation) |
Payment of £106,100 to be made to the FSCS Prohibition from providing advice on Pension Transfers |
Press release |
|
Paul Steel Estate Matters Financial Limited (in liquidation) |
Asset freezing injunction | Press release |
Only 313 firms to go.
What chance is there of any of the above fines actually being paid?
And what of the FCA having moved the goalposts in terms of what it declared originally to be good practice for this class of advice? Now that it’s smashed the BSAG to a pulp (though by what means remains a closely guarded secret), I imagine nothing.