Collapsed City pension firm fined millions by FCA over ‘unsuitable’ advice to British Steel workers
Pembrokeshire Mortgage Centre Limited (PMC), trading as County Financial Consultants, has been fined nearly £2.4 million for unsuitable advice to consumers to transfer out of the British Steel Pension Scheme (BSPS) and other pension schemes, the Financial Conduct Authority (FCA) said.
PMC advised 420 consumers, nearly two-thirds of whom were BSPS members, on whether to transfer out of their defined benefit (DB) pension scheme.
Overall, 93% were advised to transfer. PMC earned over £2 million in transfer and ongoing advice fees.
The FCA’s view is that most people should keep the guaranteed income provided by a DB pension.
PMC is currently in liquidation. The FCA will give preference to creditors, some of whom may be consumers, ahead of its financial penalty, to maximise funds available for redress.