British Steel pension scheme misleading redress offers

The Financial Conduct Authority, FCA, has published a statement in connection with the new redress scheme for customers that were wrongfully or poorly advised to transfer out of the British Steel Pension Scheme (BSPS) following the financial difficulties of the scheme’s sponsor in 2016 and the subsequent restructuring in 2017 and 2018.
Specifically, the FCA has received complaints about advisory firms that have made unsolicited offers to former BSPS scheme members which have not filed any claims in this context. According to the FCA, such firms often state that they would offer the customer a certain sum which would be more than he or she would receive when waiting for the FCA to make the calculation on the redress obligations of financial advisory firms.
In this context, the FCA notes that such behavior is absolutely non-tolerable and will be investigated. Additionally, the FCA expects firms to take the steps outlined in the corresponding policy statement when approaching consumers about potential redress payments. Also, they are required to inform customers of their options and to make clear the difference of accepting redress payments now under the current „general“ redress scheme or the new upcoming BSPS redress scheme (the scheme comes into force on February 28, 2023). Additionally, they are required to treat customers fairly and not to deceive them in any way.