DC Financial has failed due to the British Steel Pension Scheme (BSPS) scandal

The Financial Services Compensation Scheme (FSCS) has declared DC Financial as failed. The Birmingham-based life insurance and pension funding firm is associated with the British Steel Pension Scheme (BSPS) scandal. The firm was placed into solvent liquidation in March this year and was placed under investigation by the FSCS. The FSCS has said that it has received 111 claims in total, one has been upheld (triggering the default declaration), one has been rejected and 109 are in progress. In 2017, many British Steel workers were advised to transfer out of their defined benefit pension into a defined contribution pension, known as a personal pension plan or a self-invested personal pension. By transferring to a private pension arrangement, they would have lost the guaranteed benefits already built up in the scheme and the advice they received may not have been the best advice for them.