A total £3m has been calculated by Quilter for the remaining redress of British Steel Pension Scheme (BSPS) cases.
The wealth firm's 2022 interim results - published on 10 August - outlined its redress expectations following its acquisition of national advice company and network in 2019 after the collapse of the old BSPS.
More than five years had now passed since 8,000 British Steel workers - around 18% of eligible members - transferred their benefits out of the old defined benefit (DB) scheme. The National Audit Office estimates 95% of these members had received financial advice from a Financial Conduct Authority-regulated financial advice firm, advisers within which were benefitting at the time from now-defunct contingent charging structures.
Quilter's redress figure for Lighthouse's involvement is currently £3m, down from the £29m it had earmarked last December. Quilter also notes the £3m includes "other DB to defined contribution (DC) pension transfer cases" which it confirms are subject to the skilled person review.
The £3m also includes all anticipated legal costs and professional fees associated with the remaining redress.
"The provision reflects the outcome of the suitability review for all cases currently identified as being in scope, redress calculations performed by the skilled person and the offers made to customers who received unsuitable advice which caused them to sustain a loss," results stated. "The provision decreased by £5m during 2022, which has been recognised as a reduction within expenses of the group (and excluded from adjusted profit before tax), in order to reflect the results of the redress calculations performed under the skilled person review."
Redress on BSPS cases and other DB to DC transfers of £18m and professional fees of £2m were also paid in the period.
Quilter has confirmed all redress will be paid out this year.
