The Financial Services Compensation Scheme (FSCS) has provided an update for Active Wealth Customers and how they can get their money back.
Active Wealth customers
Many British Steel Pension Scheme (BSPS) members were advised by Active Wealth to transfer their pensions out of the scheme. The firm is just one of many that were guilty of encouraging unknowing steelworkers to invest in unsuitable schemes.
You can learn more about the BSPS scandal and how it impacted thousands of steelworkers here.
Due to its involvement in the mis-selling scandal and the huge level of claims launched against it, the firm was declared in default by the FSCS. So far, Active Wealth customers have taken back just £1.1m, some of whom were BSPS members.
FSCS Payouts
The FSCS has been accused in the past of treating steelworkers unfairly after compensation payouts left them out of pocket by £25,000 in some cases.
The update follows meetings with steelworkers, their representatives and MPs. The new approach will ensure a fairer approach to payouts for Active Wealth customers. This includes BSPS members.
The FSCS has stated that it will look to compensate for the value of retirement savings lost. It will achieve this by compensating for the up-front cost of professional advice on re-investment options for those members who remain in the Sipp wrongly recommended by Active Wealth.
British Steel payouts
The British Steel pension pot was valued at £15bn and more than £1bn was transferred out of BSPS into pension schemes. Unscrupulous advisers encouraged steelworkers to invest in unsuitable and fraudulent schemes. These included overseas property schemes, forestry schemes and storage pod schemes, to name a few.
If you invested following advice from Active Wealth or transferred out of your British Steel pension, get in touch. Our legal experts can offer support and advice.