The Financial Conduct Authority (FCA) has taken action to make three additional firms reverse the effects of misleading British Steel Pension Scheme (BSPS) redress offers.

The watchdog said that Alpha Financial Services made offers of £100 to 100 per cent of its clients; QED Financial Associates offers of £300 to 93 per cent of its clients; and Harvest Associates offers of either £50 or £200 to 91 per cent of its clients.

The FCA added that it was “seriously concerned” that these unsolicited settlement offers were not calculated in line with its guidance and amounted to a deliberate attempt to exclude former BSPS members from the redress scheme. 

The FCA scheme to remediate former members of the British Steel Pension Scheme (BSPS), who received “unsuitable advice” to transfer out was set in motion last year.

At the time, Sheldon Mills, executive director for consumers and competition at the FCA, said the watchdog had found that almost half the advice given to members was unsuitable and that over 1000 consumers would likely receive redress from the scheme.

The FCA previously highlighted similar concerns when it came to light that other firms were offering former members of the BSPS “misaligned settlements”.

The watchdog found that Abbey Lane made offers of £100 to 82 per cent of its clients who were BSPS members and Estate Capital made offers of £300 to 83 per cent of its former BSPS members.

The FCA said at the time: “These unsolicited settlement offers, which are likely to be for less money than they are entitled to under the redress scheme, are a deliberate attempt to exclude former BSPS members from the redress scheme.”

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