As one of the most-controversial stories to hit headlines this year, the British Steel Pension Scheme (BSPS) saga has resulted in catastrophic losses for steelworkers’ pension pots. Montfort and the firm's head of financial planning, Eugen Neagu, have created a first-of-its-kind guide specifically for financial planners advising on the British Steel Pension Scheme and associated pension transfers.

From a lack of advanced guidance from British Steel causing huge uncertainty for members to a feeding frenzy from ‘regulated’ advisory firms providing ill pension transfer advice, British Steel members have fallen victim to a number of factors estimated to have cost the average steelworker a loss of approx. £35,000 each to their pension funds (before loss of benefits). 

As one of the UK’s leading independent financial planning firms, Montfort has played a key role in the revelation and observation of this pensions disaster over the past few months.

In particular, Eugen Neagu, head of financial planning at Montfort has collaborated with various key industry figures and influencers to discuss the matter and has gained access to the closed British Steel Pension Scheme Facebook group for exclusive insight of the saga.

Eugen Neagu estimated in November, “As little as 15% of recommendations should result in transfers if full examinations of individual circumstances and guaranteed benefits taken.” Eugen Neagu has also travelled to British Steel’s HQ location of Port Talbot in Wales to join industry contacts such as Al Rush (responsible for CHIVE initiative), the FCA’s Megan Butler and TPAS’ Michelle Cracknell, to speak face-to-face with scheme members while key regulator and member meetings upon invitation.

Eugen’s involvement has revealed a huge number of deferred BSPS members requiring pension transfer advice have not yet received the appropriate and necessary advice they are entitled to. Instead, ‘commoditised’ pension transfer advice which has not taken into account their personal circumstances has been received.

Findings also reveal sub-standard reports biased towards transferring are being produced without consideration of the member’s personal circumstances.

As such, Montfort and Eugen Neagu have created a FIRST-OF-ITS-KIND guide with the sole purpose to assist financial planners advising on BSPS transfers ahead of the 22nd December 2017 deadline.

“My direct contact with BSPS members has granted not only an informed understanding of the available BSPS options and extreme wrongdoings by a number of advisors but also the member’s afflicted emotional and psychological turmoil”, comments Eugen Neagu.

The guide explores the complexities of the BSPS and the available options to advisors consulting members while also takes into account a list of important warning and factors that any expert advisor must consider before advising.

“As a figure within the financial services sector, it is these findings, methods of good practice and solutions I intend to share with you for other advisors to employ immediately when advising on such financially complex pension transfers such as this BSPS scheme”, further adds Eugen Neagu.

The purpose of the guide is to ensure that where a financial planner consulting on the BSPS, they are equipped with only the very best knowledge, intelligence and resources to experty advise.

“As advisors, we need to operate as a community and network, while always seek to improve our level of service by learning from one another. This practice allows us to collectively transform from a stigmatised industry perceived to continually seek the next transaction and into an expert advisory profession”, states Eugen Neagu.

MONTFORT'S BRITISH STEEL PENSION GUIDE FOR ADVISORS CAN BE DOWNLOADED HERE.


To further discuss Montfort's Guide or should you seek additional guidance, please contact Montfort on +44 (0)1483 202072 or email info@montfort-intl.com. Eugen Neagu can be contacted direct on eugen.neagu@montfort-intl.com

All content is copyright of both Montfort and Eugen Neagu and must not be replicated or reproduced in any way.

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