Following a review, the advice network Tenet Group has set aside £13.7m for redress over the advice given to members of the British Steel Pensions Scheme
In December 2021, the group was contacted by the FCA in connection with a multi-firm thematic review in relation to the potential redress for former members of the British Steel Pension Scheme who had been advised to transfer out of the scheme.
Tenet group’s best estimate of the outflow arising from this potential redress is £13.7m. This has been discounted to give a net present value of £13.3m. It is expected that redress payments will be made between December 2023 and February 2024.
Tenet is not the only large advice business to set aside redress for steelworkers who were advised to transfer out of their pension scheme between 2016 and 2018.
Last month, national IFA Ascot Lloyd stated it expects to pay out up to £1.2m in client redress.
Succession Wealth is also holding a provision of £10.5m over unsuitable pension transfer advice, and rival Openwork is anticipating paying an undisclosed amount of redress.
The FCA announced the BSPS redress scheme earlier this year. It estimates, 1,400 steelworkers out of the 8,000 who received unsuitable pension transfer advice in 2017 and 2018 will be set to receive a total of £71.2m in redress. If approved, the redress scheme will be implemented next year.
The Financial Services Compensation Scheme pay-outs relating to BSPS advice have already passed above £32m this year. To date, more than 20 firms known to have advised on BSPS transfers have been declared in default.
If you have been advised to transfer your DB pension into a high-risk investment, which may not be performing as promised, then you should speak to a member of our mis-sold pensions team. The advice you were offered to transfer my not have been correct and your losses could be claimed back. Our initial advice is free and if we accept your claim we work no win, no fee.
You can fill out the online contact form all call 0800 046 9976.