Scheme · Defined Benefit Transfer

British Steel Pension Scheme — Transfer Mis-selling Claims

Thousands of steelworkers were advised to transfer their defined benefit pensions out of the British Steel Pension Scheme between 2015 and 2018. The FCA has confirmed widespread unsuitable advice. If you transferred, you may be entitled to redress.

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~8,000 Members estimated to have received poor advice
£345M+ Estimated redress under the FCA scheme
£455k FOS award limit (post-Apr 2019 advice)
PS22/13 FCA policy statement governing BSPS redress
Background

What Happened with the British Steel Pension Scheme?

The British Steel Pension Scheme (BSPS) was one of the UK's largest defined benefit pension schemes. When Tata Steel restructured its UK operations from 2015 onwards, scheme members were given a time-limited choice between remaining in the restructured BSPS II, transferring to the Pension Protection Fund (PPF), or taking a cash equivalent transfer value (CETV) and moving to a personal pension or SIPP.

The scale of the restructuring created an unprecedented demand for financial advice, and many unscrupulous or inadequately qualified advisers targeted BSPS members in what became known as the 'pension transfer scandal'. The Financial Conduct Authority subsequently found that the quality of advice was poor in a significant number of cases — with some firms advising virtually all clients to transfer regardless of their circumstances.

In September 2022, the FCA published Policy Statement PS22/13, establishing a dedicated consumer redress scheme requiring firms who gave BSPS transfer advice to review it and pay compensation where the advice was unsuitable. Separate FSCS compensation is available for members of failed adviser firms.

Your Options

Four Routes to Redress

Depending on the firm's current regulatory status and the nature of your loss, one or more routes may apply to your case.

Route 1

Direct Firm Complaint

If your adviser firm is still trading, complain directly and request a suitability review under PS22/13. The firm is required to carry out a redress calculation using the FCA's standardised methodology.

Firm still active
Route 2

Financial Ombudsman Service

If your firm rejects your complaint or fails to respond within eight weeks, escalate to the FOS. FOS considers whether advice was suitable at the time it was given, not with hindsight.

Escalation route
Route 3

FSCS Compensation

Many BSPS adviser firms have since failed and been declared in default. The FSCS can pay up to £85,000 per person per firm for investment advice failures. Some claimants with larger losses may have residual shortfalls.

Failed firm — FSCS cap applies
Route 4

Civil Litigation

Where FSCS caps leave a material shortfall on large pension losses, civil litigation can pursue uncapped recovery. Claims may also be available against other parties in the advice chain under FSMA s.27.

Uncapped — no FSCS limit
Legal Precedent

The Regulatory & Legal Framework

PS22/13 and the FCA Redress Scheme

The FCA's Policy Statement PS22/13 (September 2022) established a first-of-its-kind defined benefit transfer consumer redress scheme specific to the BSPS. It required firms that provided transfer advice to BSPS members to review that advice against an objective suitability standard and, where the advice was unsuitable, calculate and pay redress using a standardised actuarial methodology.

The legal basis for adviser liability rests on the FCA's Conduct of Business Sourcebook (COBS) suitability rules, reinforced by the fundamental duty under PRIN 6 (treating customers fairly) and PRIN 9 (suitability of advice). Where advice was given by an appointed representative or unregulated introducer, FSMA s.27 arguments may render contracts voidable.

The case of Berkeley Burke SIPP Administration Ltd v Financial Ombudsman Service [2018] EWHC 2368 (Admin) confirmed that FOS has wide powers to require redress beyond strict legal liability, providing an important backstop where strict negligence claims may be harder to establish.

Common Questions

Frequently Asked Questions

I transferred my BSPS pension years ago — is it too late?
Not necessarily. Time limits for DB transfer mis-selling claims run from the date you knew, or ought to have known, that the advice was unsuitable — not simply from the date of the transfer. In many cases this date is later than people expect. Review your position carefully before assuming a claim is out of time, and see our time limits guide.
My adviser firm has closed down. Can I still claim?
Yes. If the firm has been declared in default by the FSCS, you can claim compensation up to £85,000 per eligible person per firm. Redress Advisory can identify the correct FSCS claim pathway for your case.
I have already received some redress from the firm's PS22/13 review — is the matter closed?
Not necessarily if your actual loss exceeds the redress paid, or if the firm used an incorrect methodology. You may be able to challenge the calculation through the FOS or consider civil litigation for residual shortfalls.
What was the BSPS2 / PPF choice and does it affect my claim?
Members who transferred to BSPS2 or entered the PPF did not transfer out and generally cannot claim transfer mis-selling. Claims relate specifically to members who took a CETV and transferred to a personal pension or SIPP on the advice of an IFA.
How much compensation might I receive?
The FCA's PS22/13 redress methodology calculates the difference between what the claimant's pension would have been worth had they stayed in BSPS2 and the actual value of their personal pension today. For large pension losses, this can be six figures. Individual outcomes vary.
Act Before Time Runs Out

Time Limits on Your Claim

Pension mis-selling claims are subject to strict time limits under DISP, the Limitation Act 1980, and FSCS rules. Missing a deadline can bar you from compensation permanently.

⚠ Key Deadlines

DISP complaints must generally be made within six years of the advice or within three years of when you knew (or ought to have known) the advice was unsuitable, whichever is later. FSCS claims follow the same limitation period but are also subject to the FSCS's own eligibility rules. Separate PS22/13 redress scheme deadlines may apply. Do not delay — visit redressadvisory.com/time-limits for a full analysis.

View our full time limits guide →

Find Out If You Have a Claim

Redress Advisory will assess your case, identify the appropriate route, and manage the process through our regulated solicitor partner panel — at no upfront cost.

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Regulatory Notice & FCA Self-Service Disclaimer

You do not need to use a claims management company to pursue a pension mis-selling complaint. You can complain directly to the financial firm, escalate to the Financial Ombudsman Service (FOS), apply to the Financial Services Compensation Scheme (FSCS), or instruct a solicitor independently — all free of charge. Using Redress Advisory does not improve the likelihood of success compared to pursuing a claim yourself, and our fee will reduce any compensation you receive.

Redress Advisory Ltd (Company No. 17295681) is a claims management company. Regulated legal work is carried out by our Operating SRA Partner solicitor firms. We are not a firm of solicitors and we do not provide legal advice.

The information on this page is for general informational purposes only. It does not constitute financial, legal, or claims management advice. Individual outcomes depend on the specific facts of each case. Historical outcomes in related cases are not a guarantee of results in your case.

FOS: 0800 023 4567  |  FSCS: 0800 678 1100  |  FCA Register: register.fca.org.uk