FCA Responds to British Steel Pension Scheme Report

FCA News & Press Releases

Published March 26th, 2026

Detected March 27th, 2026

Summary

The FCA has responded to the Complaint Commissioner's report on the British Steel Pension Scheme, accepting recommendations and detailing implemented improvements. These include enhanced collaboration with other regulators, increased data collection from advisory firms, and enforcement actions against misconduct, resulting in significant redress for affected members.

View original document View source feed page

What changed

The Financial Conduct Authority (FCA) has issued a statement responding to the Complaint Commissioner's report concerning the British Steel Pension Scheme (BSPS). The FCA acknowledges the losses suffered by BSPS members due to unsuitable advice and outlines several improvements implemented since 2018. These include closer collaboration with The Pensions Regulator, Pension Protection Fund, and Money and Pensions Service for better intelligence sharing, and increased data collection from advisory firms to proactively monitor pension transfer risks. The FCA has also banned contingent charging for defined benefit pension transfers to mitigate conflicts of interest and created a tool for individuals to check for unsuitable advice.

These changes aim to reduce harm and shift the market towards advice models that prioritize consumer interests. The FCA highlights that the Financial Services Compensation Scheme (FSCS) levy is at a 10-year low, indicating systemic improvements. The statement also details that over 6,500 former BSPS members have received assistance through engagement with the Financial Ombudsman Service and FSCS, with at least £106 million in redress offered to 1,870 members. Furthermore, enforcement action has been taken against over 20 individuals and firms for serious misconduct. Compliance officers should review the implemented measures and ensure adherence to new advisory standards and data reporting requirements.

What to do next

Review FCA's implemented improvements regarding BSPS and pension transfer advice.
Ensure adherence to new advisory standards and data reporting requirements for pension transfers.
Assess if any past advice provided by the firm requires review in light of enforcement actions.

Penalties

Enforcement action against more than 20 individuals and firms; FSCS levy at a 10-year low indicates reduced compensation payouts.

Source document (simplified)

FCA responds to Complaint Commissioner’s report on the British Steel Pension Scheme

Statements First published:

26/03/2026

Last updated: 26/03/2026 Linkedin Twitter
We sympathise with former members of the British Steel Pension Scheme (BSPS) who lost money after they were given unsuitable advice from people they trusted.

Complaints are a valuable source of feedback which help us improve and learn. There have also been 4 independent reports into the BSPS since 2018, which have helped us learn lessons. We have accepted several of their recommendations and implemented improvements, including those below.

We now have much closer collaboration between the FCA, The Pensions Regulator, Pension Protection Fund, and the Money and Pensions Service. This has improved intelligence sharing, enabling us to identify defined benefit pension transfer risks more swiftly.

We are also collecting more pension transfer data from advisory firms to proactively monitor trends. We created a tool so people can check if they may have had unsuitable defined benefit pension transfer advice and have banned contingent charging for defined benefit pension transfers to reduce conflicts of interest. Our latest evaluation shows these changes have helped reduce the scope for harm and shift the market away from advice models that put advisers’ interests ahead of consumers.

The Financial Services Compensation Scheme (FSCS) levy and compensation amounts stand at a 10-year low, which is also one indicator of significant improvements in the system.

Redress for BSPS members

Together with the Financial Ombudsman Service and FSCS, we have helped more than 6,500 former members complain following extensive engagement with former members.

At least £106m in redress has been offered to 1,870 former BSPS members to put them back in the position they would have been at retirement. We have also taken enforcement action against more than 20 individuals and firms where there was evidence of serious misconduct.

Read our full response.

Was this page useful? Yes No What can we do to improve pages like this? What did you find helpful? Submit Feedback