FSCS declares two more BSPS advice firms in default

The Financial Services Compensation Scheme (FSCS) has declared another two firms involved in the British Steel Pension Scheme (BSPS) scandal to be in default.

Which firms have been declared in default?

Both firms, Whitebridge Financial Planning, and Briggs Murray Financial Planning & Wealth Management, trading as Briggs Murray Wealth, were facing claims regarding the BSPS. These claims will now be dealt with by the FSCS, with claimants’ compensation capped at £85,000. As such, some savers will face a shortfall on lost monies should they have lost more than this amount after receiving unsuitable advice to transfer out of the BSPS.

The FSCS has yet to pay any compensation concerning these firms but said it had received two claims for Whitebridge and 14 for Briggs Murray. However, the FSCS doesn’t know how many BSPS claims there will be from these firms at this stage. It is also unclear whether those claims mentioned are related to the BSPS or other matters.

These defaults follow another failure earlier in April when the FSCS declared Keyword Olley & Associates, trading as North East Mortgages and EMH Financial Planning, in default.

This firm was also involved in the BSPS scandal, as were Channel One Financial Planning and Argent Wealth, which both failed in January.

BSPS situation continues to evolve

News of the latest two failures come just days after the Financial Conduct Authority (FCA) stopped another firm that had provided BSPS transfer advice from disposing of its assets. Earlier this year, a Labour MP said that financial advisers shouldn’t be “marking their own homework” on the BSPS scandal amid fears that steelworkers could miss out on the compensation they’re entitled to.

On the same day that the FSCS declared Whitebridge and Briggs Murray in default, Sheldon Mills, the FCA’s executive director of consumers and competition, told MPs that the regulator expects to have completed its consultation around its proposed redress scheme by the autumn, with the scheme being put in place by January or February next year.

If you were a BSPS member and received unsuitable transfer advice, contact us now

If the financial adviser that recommended you transfer out of your BSPS pension has gone out of business, that doesn’t mean you’re going to miss out on getting the compensation you deserve.

If you were a BSPS member and have lost monies after receiving unsuitable advice to transfer, contact us here for a free, no-obligation review of the advice received and your transfer.

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