Re Dress For Rolls-Royce Defined Benefit Probe
The Financial Conduct Authority (FCA) investigation into 65 firms, contacting Rolls-Royce pension scheme members, has led to financial redress and firms changing their Defined Benefit permissions.
In May 2020, Rolls-Royce announced it was planning to cut 9,000 jobs due to a drop in demand caused by the Covid-19 pandemic. Since then, around 3,000 employees have applied for voluntary redundancy.
In October 2020, the FCA and The Pensions Regulator announced they were requesting data from 65 advice firms that had been advising Rolls-Royce scheme members. The regulator began its probe after it was alerted by Rolls-Royce and its trustees that members who were to be made redundant were receiving cold calls from advisers about transferring out of their company DB scheme.
In response to a freedom of information (FOI) request made by New Model Advisor, the FCA said that after reviewing files from 65 firms that had advised Rolls-Royce pension scheme members. Once firm had been ordered to pay client redress after unsuitable advice had been given. Two further advice firms voluntarily varied their Defined Benefit permissions in light of this. The FCA confirmed that a total of 6 firms have been asked to supply further information.
We urge those who have received unsuitable pension transfer advice, to contact us in order to assist with a professional negligence claim were possible.