Three IFAs, which were advising members of the British Steel pension scheme on their pensions, have been declared in default by the financial services compensation scheme.
Meyado Private Wealth Management London, formerly Berkshire Financial Advisers, AW Dallas Financial Services, operating as Portfolio Pension Consultancy, and West Wales Financial Services, operating as IWA Financial Solutions and Mike Powell Mortgages all failed with the program and clients can now file complaints against advisors.
AW Dallas Financial Services began liquidation proceedings in August after receiving 35 complaints from former BSPS members, which threatened to exceed “hundreds of thousands of pounds,” according to accountants.
West Wales Financial Services Ltd was one of the first companies to suspend pension transfers in 2017, following the Financial Conduct Authority’s work on BSPS.
The FSCS urges consumers to check if they are eligible.
The BSPS case
Three years ago, BSPS members were asked to make decisions about their pensions as part of a plan restructuring.
Around 8,000 members were transferred out of the program, with transfers collectively worth around £ 2.8bn.
But concerns about the suitability of transfers were quickly raised, prompting FCA to intervene that led a number of consulting firms – key players in the debacle – to shut down their transfer consulting service, while others have ceased their activities.
The debacle created a mountain of liability which lawyers say could cost the industry up to £ 300million.
In September, FCA traveled to Swansea to meet with steelworkers who could be compensated, but encountered mixed feelings, with some showing no interest while others claimed they were unable to book a square.
The town watchdog also revealed plans to travel to Swansea this week (November 22-25) to meet steelworkers who could be compensated after receiving inappropriate advice on exiting their pension plan.
In addition, FCA will visit Scunthorpe from December 6 to 9.
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