The FCA has today forced a further three firms to reverse the effects of misleading British Steel Pension Scheme (BSPS) offers.
It said the firms were seeking to avoid their liabilities under the BSPS redress scheme.
The firms were based across the country but all associated with the British Steel Advisory Group and made unsolicited offers to their BSPS clients, which had not yet complained.
The FCA said Alpha Financial Services of Dudley, West Midlands (FRN: 500917) made offers of £100 to 100% of its clients.
Meanwhile QED Financial Associates Ltd of Sheffield (FRN: 587216) made offers of £300 to 93% of its clients.
Finally Harvest Associates Ltd of Chesterfield, Derbyshire (FRN: 629749) made offers of either £50 or £200 to 91% of its clients.
The FCA said in a statement: “We are seriously concerned that these unsolicited settlement offers were not calculated in line with our guidance, and were a deliberate attempt to exclude former BSPS members from the redress scheme.”
All three firms will now be required to ensure that consumers who accepted these unsolicited offers are treated in the same way as customers who did not.
Under the BSPS redress scheme, firms must review the advice they gave and pay redress to those who lost money because the advice was unsuitable.
The FCA said it will ensure customers receive the appropriate redress they are entitled to, putting them back in the financial position they would have been in at retirement had they stayed in the BSPS.
The FCA previously imposed similar requirements on David Stock & Co Limited, of Newport, Gwent, (FRN 121754), as well as two other advice firms.
It said: “We will continue to take action where we identify this malpractice.”
The British Steel Advisory Group dropped its challenge and paid the FCA £100,000 towards its costs in April.
The FCA said: “We welcome the British Steel Adviser Group’s (BSAG) decision to drop the legal challenge against our decision to set up a redress scheme for former British Steel Pension Scheme (BSPS) members.
“Our view all along has been that the challenge was without merit and that we would vigorously defend the scheme.”
Anyone who thinks they may have been affected can call the FCA helpline on 0800 098 4100 or read more about the scheme.
