MP lambasts watchdog for failing retired steel workers who lost their savings in dodgy investments
Frank Field, chairman of the Work and Pensions Select Committee, said workers were ’roundly failed’ by the regulators
British Steel pensioners are being ‘sold short’ over compensation for pension losses after they were ‘mis-advised’ to transfer their savings into unsuitable investments, an MP has warned.
Frank Field, chairman of the Work and Pensions Select Committee, said workers were ’roundly failed’ by the regulators who were supposed to protect their life savings from scammers when the scheme was overhauled.
He called for the pensioners to be given the ‘maximum possible compensation for the grievous losses they have suffered’.
The Financial Services Compensation Scheme (FSCS) said it would revisit 15 claims it has already dealt with, but it ruled out the Financial Conduct Authority’s (FCA) advice it should regard the case as ‘unique’ and waive FCA rules on calculating redress.
British Steel Pension Scheme (BSPS) members who lost their savings can be entitled to compensation of up to £50,000.
Field said it seems that British steelworkers, after being targeted by scammers looking to snatch their pensions, ‘are being sold short again on what even the FCA calls ‘rightly deserved compensation’.
‘The FCA has ridden to their defence and urged the FSCS to be more generous, but the FSCS is clinging to rules the FCA says needn’t apply.
‘The FSCS must think again.’