BANK of England governor Andrew Bailey will face MPs later today as he faces questions over his then-role at the top of the financial watchdog during the British Steel pension scheme.
When Tata Steel — British Steel’s owner — was in financial difficulty in 2017, The Pensions Regulator allowed staff to transfer their pensions out of their defined-benefit scheme.
One in five did so, usually on the back of independent financial advice, much of which came from either individuals unqualified to do so or those incentivised to encourage staff to transfer their pensions out.
Half of that advice has since been deemed by the FCA to have been unsuitable, with the average individual who has since complained to a compensation scheme having lost £82,600.
The National Audit Office said recently that the financial watchdog — then run by Bailey — had limited knowledge of the market at the time.
Bailey will be questioned by the public accounts committee, whose chair Meg Hillier MP said last month that the FCA was “asleep at the wheel” during the British Steel transfer process.