Firms probed over Tata staff pensions advice

AROUND 17 companies are being investigated for their handling of pensions advice to steelworkers, the Financial Conduct Authority (FCA) has said.

Concerns were raised last month that Port Talbot steelworkers were being targeted by rogue financial advisers trying to persuade them to hand over their pension pots.

Since then around 60 current and former steelworkers from the plant have met representatives of the regulator, saying that they have been given poor advice about the British Steel Pension Scheme (BSPS).

The separation of the BSPS from Tata Steel left members with two options – switch to a newly-established scheme which promises the same benefits as the BSPS, but with lower future increases, or do nothing and have their pension transferred into a “lifeboat” scheme, the Pension Protection Fund (PPF), and receive PPF compensation.

The deadline for steelworkers to make a decision is December 22.

So far it is believed that around 30,000 members from across the country have failed to respond.

If they do not they will automatically be placed in a default arrangement.

The FCA has said that it will take action if evidence of any wrongdoing is found.

Four firms have already been stopped from giving pensions advice after the intervention of the financial regulator.