National Audit Office report sets out how British Steel Pension members were failed in stark detail

18 March 2022

National Audit Office report sets out how British Steel Pension members were failed in stark detail

Commenting on the National Audit Office report on British Steel Pension members, PIMFA, the trade association for wealth management, investment services and the investment and financial advice industry, said that the report lays out in stark detail the way in which members of the British Steel Pension Scheme were failed and that improvements in the regulatory environment and standards of professionalism give a degree of comfort that another British Steel scandal should not and happen again.

Simon Harrington. Head of Public Affairs at PIMFA, commented: “The findings of the National Audit Office’s British Steel report sets out in stark detail the manner in which members of the British Steel Pension Scheme (BSPS) were failed. While it is clear that the circumstances which gave rise to these events combined to create a unique situation, it is equally the case that the regulatory environment and standards of professionalism with respect to the provision of final salary pension transfer advice have improved exponentially since this crisis. It is on that note that the industry can draw a degree of confidence that a scenario like British Steel should not and indeed could not happen again.

“However, the point remains that significant numbers of individuals who transferred out of the scheme who may be eligible for redress have not come forward. On this point, we will be working with the Regulator on the design and delivery of the BSPS redress scheme.

“We believe that it is vital going forward that such a scheme gives due consideration to individual outcomes with respect to the calculation of their transfer value, the investment they found themselves in and, of course, the suitability of the advice given.”

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

• PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
• The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
• PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
• PIMFA  leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments. 
• PIMFA has made numerous recommendations to the FCA regarding the Future of Advice, Future of Supervision and the FSCS levy – read more.
• PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
• Further information can be found at pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376

Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869 / +44 (0)7979 493225