Mis-sold Investment Specialists - Call For a Free Expert Claims Assessment
0808 163 1659

Back to blog overview

British Steel IFA Told to Pay Out Over Unsuitable DB Transfer Advice

Published on:

The British Steel pension scandal is one of the most publicised cases of mis-selling in recent years. Numerous employees were left out of pocket as a result of bad financial advice, and to this day, are still seeking compensation for their losses.

The Financial Ombudsman Service has now ordered those responsible to compensate these workers. Here’s some information about the ongoing situation.

What happened?

Back in 2017, British Steel employers were asked to make a major financial decision – either transfer their existing workplace pension to a new pension scheme, or stick with their current fund.

Close to 8,000 workers chose to transfer; a move that was worth around £2.8billion in total. Many of them had been advised to do so, as the new pension product was presented as the more lucrative option.

However, it soon came to light that the new pension was unsuitable for many of the British Steel employees, and several lost money as a result.

Taking action

The case was examined in depth by the FCA, and after their investigation, they stated that 10 of the companies involved could no longer offer a transfer advice service.

This was only a temporary measure, though. Some of these businesses, such as County Capital Wealth Management and Mansion Park, regained their permission just a few months later.

Mansion Park – finally paying the price

It now seems that Mansion Park’s luck has run out. In November 2020, the FOS ordered them to pay out compensation, based on their conclusion that the advice offered to a client was an ‘unbalanced representation’ of their options.

The client in question claimed that he’d felt pressurised to transfer his pension, and that no-one had checked his suitability for the new pension product. Mansion Park protested the statements, and said that they’d assessed the client’s circumstances and run through all the options with him.

However, the FOS found ‘fundamental flaws’ in Mansion Park’s response. The Ombudsman dealing with the case commented: “I cannot agree with Mansion Park’s comment that the combination of the lump sum death benefit and the lack of need that (the client) would have for the pension would mean that there was no justification in not transferring. I take the opposite view.”

What counts as mis-selling?

Pension mis-selling is a growing problem, and increasing numbers of people are seeking compensation for their financial losses. Here are a few indications that you might have been mis-sold to:

  • You weren’t told about the risks. Most investment products come with a level of risk, and this should have been carefully explained to you.
  • You didn’t understand the nature of the pension product. All the details should have been outlined carefully. If you felt confused; that’s the advisor’s fault, not yours.
  • Your personal circumstances weren’t examined. It’s the advisor’s responsibility to check the pension product is suitable for your needs. In order to establish that, they first need to understand your circumstances, and your financial plans for the future.
  • You were hassled into transferring. Good financial advice should always be impartial, and designed to help you make the best possible decision. If you felt pressurised into transferring your DB pension, this counts as mis-selling.

What to do if you’ve been mis-sold to

If you’re a victim of pension mis-selling, you may be eligible to receive compensation. Get in touch with Goodwin Barrett on 0808 163 1659 today or email enquiries@goodwinbarrett.co.uk.

 

Request a call back

If you'd like us to call, please fill in your details

Why choose us?

  • Hassle-free process.
  • No lengthy paperwork to complete.
  • Your own dedicated claims expert.
  • Claims settled within 8 weeks on average.
More About Us

Speak to our friendly experts

If you feel you've been let down by your bank or financial adviser please call us.

Call today 0808 163 1659

Customer Stories

We've helped thousands of people win compensation as a result of unsuitable financial advice.

William Thornley I’m absolutely delighted with the service we got from Goodwin Barrett, I couldn’t believe how easy it was and i’ve nothing but praise for them
Alan Parton This was an excellent result which my wife and I never expected. My sincere thanks to you for such an excellent achievement, I cannot thank you enough
Stuart Snowden After sending a report to Santander, they agreed with our findings and awarded Mr Snowden an amount of £7,000 made up from a refund of the losses together with interest and compensation.
William Miller This was a fantastic result I never expected. My sincere thanks for such a prompt and efficient service.
Margaret Long I am so grateful to your company but especially to Steve Wise for getting me the money back
Janet Rynkiewicz We reported our findings to Halifax and within a matter of weeks had secured our client the sum of £26,700 in compensation.
Fred Hardman After we sent a detailed complaint to Halifax, Fred was delighted to receive £6,916 from the bank in a matter of weeks.
Stephen Montague Having investigated the complaint Lloyds TSB agreed that the advice was unsuitable and agreed to pay the clients £10,000.

Figures shown are before the deduction of our fee.