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British Steel: FCA reveals names of firms to cease pension transfers

British Steel: FCA reveals names of firms to cease pension transfers

The Financial Conduct Authority (FCA) has revealed the names of two more advice firms which have agreed to stop defined benefit (DB) transfers over advice on the British Steel Pension Scheme (BSPS).

On Monday the regulator announced three advice firms have ceased pension transfer advice following FCA intervention into advice for BSPS members.

Today Megan Butler (pictured), director of supervision at the FCA, said this number has now been increased to four firms.

When challenged by MPs on the Work and Pensions Committee, Butler revealed three of these firms as Active Wealth (UK), Pembrokeshire Mortgage Centre and Mansion Park. The voluntary permission restriction on Active Wealth was already reported by New Model Adviser® but the other two firms were not.

Mansion Park is based in Leicestershire and has 20 regulated staff. Pembrokeshire Mortgage Centre has four regulated staff.

Both firms have been contacted for comment, but Mansion Park has not responded.

However, Pembrokeshire Mortgage Centre said it was co-operating with the FCA and had 'voluntarily offered to suspend its permission to conduct pension transfer advice' while the FCA completed its inquiries.

'It is confidently expected that Pembrokeshire Mortgage Centre will be shown to have acted properly and correctly at all times and looks forward to the FCA completing its inquiries in the near future,' a spokeswoman for the firm added.

New Model Adviser® will update the story to include any comments made by Mansion Park. 

Butler could not name the fourth as the permission restriction is not yet public.

She also revealed the FCA is looking at more firms over their advice to members of the BSPS scheme.

‘In the context of British Steel I have a team of eight people who are focused entirely on visiting firms who are active in advice on British Steel. At the moment we have visited 10 firms; we are looking at four of them and we have three further firms we are visiting over the next few days.’

‘It became obvious to us around October that there were particular problems around British Steel,’ Butler added. 

‘The firms we have had direct interaction with accounted for over three quarters of the advice provided on the transfers,’ she added.

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