The FCA has “wholly” rejected the conclusions made by the Work and Pensions Select Committee on the regulator’s work on the British Steel Pension Scheme (BSPS) and its pension transfer advice review.

Responding to a statement by the Work and Pensions Select Committee earlier last week, FCA chief executive Andrew Bailey has informed Committee chair Frank Field that “the Committee’s statement and correspondence do not set out the broader work on BSPS, the FCA’s regulatory remit, or the collective work being undertaken by The Pensions Regulator, The Pensions Advisory Service and the FCA.”

In the letter Bailey reconfirmed the full remit of the FCA, The Pensions Regulator, TPAS, Pension Wise and PPF, and their relation to the BSPS case.

Through its review of 109 financial adviser firms, advising on pension transfers from the BSPS, the FCA decided to undertake a further 21 firm assessments and a review of individual case files to assess suitability.

From 129 client files, the FCA found 51 per cent of clients to have been offered suitable advice. However 33 per cent of cases contained unsuitable advice and 16 per cent of cases were unclear whether advice was suitable or not.

The letter also outlined the FCA’s joint venture with TPAS to set up and communicate a dedicated BSPS helpline. As of 5 January 2018, the helpline received 161 calls, with a further 91 to the general contact number, nine via the TPAS web chat and seven in writing.

“Our work on BSPS is not finished and we are continuing to take action where we have concerns. We have written to all pension transfer advisers in the UK to remind them of their responsibilities and our expectations,” Bailey stated.

The FCA has also issued a joint letter with TPR and TPAS to around 12,000 BSPS members who are seeking a transfer quote and those who are in the process of transferring out. In addition the three bodies have sent a separate letter to BSPS members who have already transferred out to provide information on the complaints process if they have any queries with the transfer and advice.

Bailey concluded: “As I have already stated, we wholly reject the Committee’s conclusion, and fundamentally disagree with the sentiment we may be ‘sleepwalking into another mis-selling scandal.’

“My letter to you shows we have been carrying out detailed, extensive and robust action that has been targeting the issues we have seen in BSPS but more broadly across the entire pensions advice landscape.”

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