The Financial Conduct Authority (FCA) has published its final rules for a scheme to remediate former members of the British Steel Pension Scheme (BSPS), who received “unsuitable advice” to transfer out.

The FCA anticipates that over 1000 consumers will receive redress from the scheme, stating that firms will have to review the advice they gave and pay redress to those who lost money because of unsuitable advice.

Under the scheme, the FCA will provide a tool form firms to use to calculate redress payments. Firms will have to provide details of all cases rated as 'suitable' to the FCA so it can check if consumers would like the Financial Ombudsman Service to independently review their advice, the watchdog said.

“We have consulted widely on a redress scheme for British Steel Pension Scheme members,” said Sheldon Mills, executive director for consumers and competition at the FCA. We found that almost half the advice given to members was unsuitable – an exceptionally high level compared with other cases.”

Mills said the redress scheme will enable BSPS members to get the retirement they worked for.

He added: “'We’re working to get the scheme in place quickly to end uncertainty for members.”

The new scheme follows the FCA's calls for higher quality credit information so that lending decisions better match consumers’ financial circumstances.

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