British Steel Pension Scheme: Transfers — [Mr George Howarth in the Chair]

Part of the debate – in Westminster Hall at 10:18 am on 10th April 2019.

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Photo of Stephen Kinnock Stephen Kinnock Labour, Aberavon 10:18 am, 10th April 2019

On the issue of compensation, phoenixing and rogue financial advisers’ ability to just shut up shop and walk away, surely there is also a question of insurance. In our recent meeting with the FCA, which I found absolutely extraordinary, it was made clear to us that there appears to be no mandatory level of insurance that financial advisers must take out so that they can be held to account and insurance pay-outs can be made. My understanding is that, as soon as these advisers see the writing on the wall and know that people will come after them for compensation, they shut down, and there is no backstop—perhaps safety net is a better term—so that people who have been ripped off can go after them through an insurance process. Does not that extraordinary situation require a policy and legislative shift so that the FCA has a chance of doing its job in this area?