A legal challenge to the Financial Conduct Authority’s decision to establish a compensation scheme for former members of the British Steel Pension Plan (BSPS) has been set aside.
The British Steel Advisors Group (BSAG) reportedly declined the challenge and paid the FCA £100,000 for the cost.
The company retained FS’s attorneys to represent it in challenging the bailout scheme, and the attorneys filed an application with the Superior Court (Tax and Chancery Chambers) on 23 December.
The FCA has previously said it will “strongly defend” the relief plan against legal challenges.
In January, it said, “We view the legal challenge as an attempt by some former BSPS members to delay the payment of compensation.
Today, it welcomes the decision to withdraw the challenge and is pleased that the group has agreed to make a “substantial contribution” to its costs.
“Our view was that the challenge was without merit and we would vigorously defend the plan.
“We are also pleased that BSAG has agreed to make a substantial contribution to our costs, as this challenge, in our view, has been unfairly pursued with little intent to go to court.
“We have publicly warned and taken action against certain BSAG companies that have made unsolicited offers to former BSPS members.”
Under the Relief Scheme, companies will be required to review the advice they gave to former BSPS members and send money and compensation to those who have lost funds due to inadequate advice.
FCA warns former BSPS members that accepting the relief offer now means they are not included in the FCA scheme and may not receive the appropriate amount of relief.
Members of the BSPS are advised not to reply to unsolicited offers outside of the FCA’s redress scheme.
If you believe you have been impacted, please call the FCA Helpline at 0800 098 4100 or read more. scheme.