Monday, 07 March 2022 10:03
FSCS declares BSPS advice firm in default
The Financial Services Compensation Scheme has declared financial advice firm John Dyer in default.
The move opens to door to compensation claims against the failed Swansea-based advice firm.
The firm had arranged pension transfers for members of the British Steel Pension Scheme (BSPS).
John Dyer Ltd was declared in default on 3 March.
The FSCS has so far received 41 claims from clients of John Dyer, all of which have been related to pension transfer advice.
The Financial Conduct Authority (FCA) ordered the firm to stop providing regulated activities and products in January 2019, when the firm entered voluntary liquidation.
John Dyer is the latest of several advice firms to be declared in default by the FSCS following compensation claims in relation to BSPS pension transfer advice.
Other firms to recently enter liquidation as a result include Channel One Financial Planning, Argent Wealth, Fortuna Wealth, A.W.Dallas Financial Services and West Wales Financial Services.
The FCA has also acted against advice firms found to have given BSPS pension transfer advice.
The FCA expects to consult on a redress scheme for former BSPS members this month.
In 2017, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension, typically a Personal Pension Plan or a Self-Invested Personal Pension (SIPP).
It was one of three choices available to British Steel Pensions Scheme (BSPS) members. The others were the new scheme (BSPS2) and Pension Protection Fund (PPF).
The British Steel Pension Scheme was restructured in 2018.
When British Steel decided to encourage workers to consider moving their pension a number of advice firms moved in but poor advice was widespread and the scandal attracted national media attention with a number of Financial Planners helping victims on a pro bono basis and leading MPs getting involved.
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