The FCA has warned that at least 15 firms are targeting BSPS victims with unsolicited and misleading offers of redress.
The regulator said the offers could cause further harm to BSPS victims who may get less than they deserve.
The watchdog issued the warning today ahead of its official BSPS redress scheme which starts on 28 February.
In January the FCA set out concerns about an “emerging practice” where some firms were making unsolicited offers to former BSPS members.
Members of the BSPS (British Steel Pension Scheme) were targeted several years ago by often unscrupulous advice firms encouraging them to transfer to other pension schemes despite the damaging effect this would have on their pension benefits in many cases.
Under the new FCA scheme firms will have to review the advice they gave and pay redress to those who lost money because of unsuitable advice.
Today the FCA said it had identified more firms – 15 who are engaged in unsolicited approaches to BSPS victims offering to help them claim compensations. Most are associated with the British Steel Action Group, the FCA said.
The FCA said in a statement today: “We are concerned that this is a deliberate attempt to exclude former BSPS members from the scheme, binding them to receiving less money than they might be entitled to under the scheme. This type of behaviour will not be tolerated and we will take firm action to put a stop to this sharp practice.”
The regulator said that it expected firms who were involved in the approaches to withdraw any existing unsolicited settlement offers pending any consumer agreement, stop making further unsolicited offers to former BSPS members who have not made complaints and treat any pending unsolicited settlement offers as withdrawn.
The FCA also warned former BSPS members that accepting a redress offer now might mean they are not included in the FCA scheme and might not receive the right amount of redress.
It advisers BSPS members not to reply to any unsolicited offers outside the FCA redress scheme.
Anyone who thinks they may have been affected can call the FCA helpline on 0800 098 4100 or read more about the about the scheme.
