Two firms that have been making unsolicited settlement offers to former members of the British Steel Pension Scheme (BSPS) have been publicly blasted by the Financial Conduct Authority (FCA).
The regulator today (22 February) said it had issued Sheffield-based Abbey Lane Financial Associates and Swansea-based Estate Capital Financial Management with supervisory notices.
Abbey Lane made offers of £100 to 82% of its clients who were BSPS members, while Estate Capital's offer was £300 to 83% of its former BSPS members.
The FCA said the offers were "significantly misaligned" with the average calculated redress that will be handed out under the formal redress scheme. The scheme, which began this month, will see an average £45,000 per affected BSPS former member who received unsuitable transfer advice.
"The firms will be required to apply the redress scheme to consumers who have accepted these offers in the same way they must for consumers who have not accepted offers," it added.
The regulator said that it "will not tolerate" the behaviour, which follows a warning to firms earlier this month.
Both firms have been warned to withdraw any existing settlement offers currently pending, treat any pending offer as withdrawn, and cease making further offers.