A Newport-based advice firm linked to the British Steel Pension Scheme scandal has failed with the Financial Services Compensation Scheme.
FT Adviser understands the lifeboat scheme has received 175 claims against Niche Independent Financial Advisers Ltd, with one upheld and 49 rejected - mainly due to the claims being calculated as having no financial loss.
The FSCS has so far paid £73mn in compensation to BSPS clients, against total losses of more than £106mn.
Niche Independent Financial Advisers entered liquidation back in May 2023 and was placed under investigation by the FSCS.
As a claim has now been upheld, Niche Independent Financial Advisers has been placed into default.
This means the compensation scheme is open to accepting further claims should they arise.
According to the FCA register, the firm has been authorised since November 2007.
Niche Independent Financial Advisers Ltd traded as Niche Pension Specialists and is a separate and distinct company from Niche Sport & Finance Limited which trades as Niche IFA.
The BSPS case
During 2017, BSPS members were asked to make decisions about their pensions as part of a restructure of the scheme.
About 8,000 members transferred out of the scheme, with transfers collectively worth about £2.8bn.
But concerns about the suitability of the transfers were soon raised, leading to an intervention from the Financial Conduct Authority that resulted in a number of advice firms – key players in the debacle – stopping their transfer advice service, while others went out of business.
The debacle created a mountain of liabilities, which lawyers at the time thought could cost the industry up to £300mn.
The FCA announced in 2022 that it would deliver £71.2mn in compensation payments to former members of the scheme who received unsuitable advice, in the form of a payment scheme.
The scheme covers those who transferred out between May 26, 2016 and March 29, 2018.
amy.austin@ft.com
