So the onus of redress falls on the Financial Ombudsman Service and the Financial Services Compensation Scheme.
As regards access to best advice, most of the rogue advisers appeared on the directories to which the trustees referred members. For example, Active Wealth Management, was the leading IFA on MaPS’ directory.
One steelworker who used AWM said at a 2018 Government hearing that “he thought this was what I was supposed to do”.
One national firm active in Scunthorpe, operated out of a union office.
[The cross-advisory group of volunteer advisers] Chive, organised by financial adviser Al Rush, restored some order in early 2018 but this was independent of the trustees.
Though LEBC was employed to give guidance on the choice between the PPF and BSPS2, my request for a transfer advice helpline manned by authorised people, was turned down by the trustees on the advice of their consultants.
FTA: What is the government's role to play in preventing future BSPS-type scandals? Is this purely a matter for private companies or do we need better legislation?
HT: We do not need more legislation; we do need better regulation. TPR and FCA failed – as did MaPS. The Government tried to put a stopper on the damage with Caroline Rookes’ report, but the genie was out the bottle.
The banning of contingent charging for almost all transfer inquiries was a necessary intervention which came too late, but the real failure from government was to allow the RAA to go ahead in the first place, putting so much hard-earned pension at risk.
You can catch Henry Tapper tweeting at @henryhtapper
