Pembrokeshire Mortgage Centre Fined £2.4m for British Steel Pension Advice Failings

Pembrokeshire Mortgage Centre Limited was fined £2.4 million by the FCA in December 2022 for serious failings in the advice it gave to clients on transferring out of the British Steel Pension Scheme. The firm, which traded as County Financial Consultants, advised hundreds of steelworkers to give up guaranteed pension benefits and the regulator found those recommendations to be profoundly inadequate.

The FCA’s investigation found that of 420 consumers advised by the firm, nearly two-thirds were BSPS members, and 93% of all those advised were told to transfer out of their defined benefit pension. The FCA concluded that the firm’s suitability reports were generic rather than tailored to individual clients, and in many cases contained misleading, confusing or contradictory information. The firm earned over £2 million in fees from this advice.

The Financial Services Compensation Scheme has investigated claims against the firm and found an 88% uphold rate, a striking figure that underscores just how widespread the harm was. In 38% of cases, the FSCS awarded the maximum compensation of £85,000 per claimant. Had no cap applied, the total compensation due would have been approximately £14.6 million.

The firm is now in liquidation, with McAlister & Co Insolvency Practitioners appointed. Lee Morgan, the director responsible, has been banned by the FCA from working in regulated financial services. Former clients who have not yet made a claim should act without delay.

If you were advised by Pembrokeshire Mortgage Centre or County Financial Consultants to transfer out of the British Steel Pension Scheme, contact our team for a free review. Our specialists in pension transfer claims are here to help you recover what you are owed.