Aberavon MP Stephen Kinnock has contacted the Financial Conduct Authority (FCA) over worrying reports of opportunistic financial advisers providing steelworkers with poor financial advice and luring steelworkers into transferring millions out of pension funds.
Mr Kinnock will be meeting with Mr Bailey next week and has said, ‘I am increasingly concerned about the stories of unscrupulous advisers targeting the steelworkers and cheating them out of their pension money. I will be raising these concerns directly with the Chief Executive of the Financial Conduct Authority.’
In his letter to Andrew Bailey, Chief Executive of the FCA, Mr Kinnock said, ‘With highly valuable final salary pension schemes, and limited information and support available to make an informed decision, steelworkers have been targeted by those wishing to exploit the situation.
‘In some situations they have been given advice, contrary to current regulatory advice, to transfer final-salary benefits into riskier schemes without any risk-profile checks, or into unsuitable investments and other products with unnecessarily high charges.
‘It is clear that the steelworkers have been left exposed to unscrupulous individuals who have sought to exploit them in what has been a very high profile pension saga.
‘Urgent action needs to be taken to address this matter and protect steelworkers from these scams’