Sleepwalking into a scandal over pensions

The regulator has ruled out a ban on transfers out of final-salary pension schemes, says David Prosser. That could lead to problems later down the line.

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British Steel pensioners may get their fingers burned
(Image credit: photllurg)

The Financial Conduct Authority (FCA), the City regulator, has ruled out a ban on transfers out of final-salary pension schemes, despite warnings from MPs that it is "sleepwalking into another huge mis-selling scandal". The row follows an inquiry into the advice given to members of the British Steel pension scheme, which found that more than 2,000 steelworkers had transferred out of their final-salary schemes after receiving allegedly unsuitable advice.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.