More than £3.5 million in claims has been paid out by the Financial Services Compensation Scheme against Active Wealth as they advised steelworkers to transfer out of the British Steel Pension Scheme (BSPS).
Active Wealth (UK) stopped taking pension business back in November 2017 after their regulator was made aware of concerns about transfer advice given to steelworkers.
A voluntary liquidator was appointed at Active Wealth UK in February 2018, which meant that mis-selling claims could be submitted to the FSCS. From then until April this year, the lifeboat fund had paid out £1.8 million in successful claims against the collapsed Active Wealth UK. That figure has now almost doubled to £3.59 million.
Both MP's and Advisers have campaigned for increased payouts to BSPS members who were advised to transfer out of the scheme. In April, the FSCS said that five steelworkers are being paid out by a combined increase of £80,000.
The FSCS is funded by a levy on financial firms. The lifeboat fund said pension and investment advisers will will need to contribute £153 million in the 2018/19 financial year.
The principal of Echelon Wealthcare and one of the leading British Steel campaigners said earlier this year that claims about poor advice to transfer out of the BSPS could hit the high hundreds.
If you would like to get some help with a claim, call 01903 868 251 to speak to a member of the team.
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