Financial watchdog launches investigation into allegations of pension sharks targeting steelworkers
By Scunthorpe Telegraph | Posted: 17 Nov 2017
Allegations that pension sharks have been targeting the savings of Scunthorpe steelworkers during the major restructuring of their retirement scheme are under investigation by the Financial Conduct Authority (FCA).
It has been revealed that around 11,000 of the 124,000 members of the British Steel Pension Scheme (BSPS) have sought information how how much they would be paid if they transferred their savings to another provider.
Already around 1,700 stake-holders have either transferred their savings or are in the process of doing so.
Some are from Scunthorpe, but it is not known how many.
Scunthorpe steel pensioners to be offered choice of two schemes
Payments in some cases are said to involve sums in excess of £400,000.
A FCA spokeswoman said today: “We are aware of the issues raised and are looking into them as part of our wider work on direct benefit pension transfers."
Last month the authority revealed it had discovered that a large number of firms did not offer advice on defined benefit transfer.
Instead they introduced clients to firms who specialised in advising on pension transfers.
Some of the specialists made recommendations without considering a receiving scheme or investments, or knowing the introducing adviser’s intentions for investment.
That opened up the risk of pension savings ending up in inappropriate or scam investments.