BSPS connected Financial Advisory Firm, Whitebridge Financial Planning Ltd, unable to pay out future claims after being declared in default by the Financial Services Compensation Scheme (FSCS).
Newcastle-based Whitebridge Financial Planning Ltd was a Financial Accountant Advisory Firm who was declared in default on 26 April by the Financial Services Compensation Scheme.
Background
Whitebridge Financial Planning Limited was dissolved in October 2018 according to Companies House filings. Whitebridge Financial Planning Limited was previously associated with the British Steel Pension Scheme (BSPS), whom they financially advised clients to transfer their pensions into unsuitable private pension schemes.
The BSPS case
BSPS members were requested to make decisions about their pensions during 2017, as part of the scheme’s restructure- of which approximately 8,000 members transferred funds collectively worth around £2.8billion.
The suitability of these transfers was later challenged, leading to involvement of the Financial Conduct Authority. This intervention from the FCA resulted in several advisory firms stopping their transfer advice services due to this fiasco, while others closed their businesses. Many members found that by transferring to a private pension scheme, they had lost the benefits that they had previously possessed in the British Steel Pension Scheme.
FCA’s Redress Scheme
It has been confirmed by the Financial Conduct Authority (FCA), that they will be pushing ahead with its redress scheme, which will cover steel workers who transferred out of the BSPS between 26 May 2016 and 29 March 2018.
The Financial Conducts Authorities Redress Scheme will apply to 343 advice firms. It is expected that approximately 40 advice firms to become insolvent as a result of these claims.
The FCA have previously estimated that 1,400 steelworkers will receive £71.2million in redress under the scheme, therefore, if you have transferred your pension out of the BSPS Scheme between 26 May 2016 and 29 March 2018, you may be eligible for redress.
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