British Steel Pension Scheme redress scheme

We are proposing to set up a redress scheme for people who transferred out of the British Steel Pension Scheme (BSPS).  

If we decide to implement a redress scheme, the firm which advised you to transfer your pension will have to check the advice they gave you. If the advice wasn’t suitable, the firm will check to see if you lost money as a result. If you did, they’ll write to you and offer you compensation. 

They might also need to get in touch with you beforehand, if they need more information from you to check their advice or calculate the money they might owe you.  

We are gathering feedback on our proposals for how the scheme will work. We’ve set out the most important ones for you to consider and would be grateful for your feedback on these. You can keep up to date by signing up to email updates.

If you are concerned that you received unsuitable advice, you can make a complaint now rather than waiting for the outcome of the consultation on the redress scheme. Find out how to complain.  

Our plans for setting up the scheme

31 March 2022 We published our consultation paper setting out our proposals for the scheme.
Spring/Summer We will get feedback on our proposals for how the redress scheme will work.
Summer/Autumn We will review all the feedback and finalise our plans for the scheme.
Autumn/Winter We will publish our final plans for the redress scheme and more information for you.  

A redress scheme can only require firms to assess cases for consumers who could have complained at the time the FCA makes the scheme rules.

There are time limits (find out more from the Financial Ombudsman Service) for making a complaint about the pension transfer advice you received. But if we make rules to require firms to implement a redress scheme, firms will be required to review advice given to consumers even if the time limits for making a complaint or claim run out after the scheme starts. 

If you transferred in 2016 or earlier, there is a possibility that the advice you received will not be covered by the proposed redress scheme because too much time has passed since you received the advice. You should check your advice now and, if you feel it was unsuitable, consider claiming.

On 18 May 2022, we wrote to consumers who transferred out in 2016, urging them to take action.

If your firm is no longer trading or goes out of business before the scheme starts, you can make a claim to the Financial Services Compensation Scheme (FSCS)

Our proposals for how the scheme would work

This is set out in more detail in our consultation paper and is subject to change depending on the feedback we receive. These steps will only apply to people who are included in the scheme. There is more information on who would be included below.

Step 1: Your firm will write to you to tell you if they’re going to review your advice. They may need more information from you. 

Step 2: After getting your letter, the firm should write to you again to tell you if they found your advice suitable. 

If they found your advice to be suitable, the firm will pass your contact details on to us and we will ask you if you would like us to take steps to enable your case to be referred to the Financial Ombudsman Service for an independent review.

Step 3: If they found that your advice was not suitable you will receive a letter asking you for more information so that the firm can calculate whether you have lost money and it owes you compensation.

Step 4: If the firm calculates that it owes you money you will receive a letter with an offer of compensation. 

Step 5: If you accept this offer the firm will be required to pay you compensation within a set period of time.

If we introduce a scheme, we expect it will come into force in early 2023. We expect that the vast majority of consumers who are eligible would receive compensation later in 2023 or in early 2024. 

Our consultation paper sets out our plans to check that your firm is properly reviewing your advice and treating you fairly. 

If you were unhappy with the way your firm has assessed the advice they gave you, you will be able to complain to the ombudsman service who will consider whether the firm applied the scheme rules correctly when assessing your case and calculating compensation.  

We will also be monitoring firms closely to make sure that they don’t avoid paying out compensation.

Who would not be covered by the redress scheme

The groups of people not covered by the proposed scheme, and the steps they can take, are set out below.

Have your say on the proposals for the redress scheme

We want your feedback on our proposals. The key points for former BSPS members are outlined on this page but you can find more information in our consultation paper.   

If you are a former BSPS member, you can give feedback on our online form or if you need to submit your response in an alternative format due to accessibility reasons, please contact us at [email protected]. If you would like to give more detailed feedback you can find more details of how to do this.

As we receive responses to our consultation, we have provided answers to requests for further clarification.

Page updates

18/05/2022: Publication added
12/04/2022: Link added Link to Welsh language page added.