The Financial Services Compensation Scheme (FSCS) has placed financial advice firm Inspirational Financial Management (IFM) under investigation and is considering claims against the company.

IFM is one of the firms associated with claims regarding the British Steel Pension Scheme (BSPS), alongside defined benefit (DB) pension transfer advice relating to other occupational pension schemes.

The company entered administration on 30 November 2023.

The FSCS said all claims would be assessed on a case-by-case basis to determine whether they are eligible for compensation and, as part of its investigation, it will consider whether the firm can meet claims made against it.

In 2017, many British Steel employees were advised to transfer out of their DB pension scheme into a defined contribution personal pension plan or self-invested personal pension.

A redress scheme for people who were advised to transfer out of the BSPS was set up by the Financial Conduct Authority (FCA), with firms asked to review whether the advice they gave was unsuitable, and calculate and pay redress to clients where unsuitable advice caused a financial loss.

However, as IFM has gone out of business, it will not be able to continue to take part in the redress scheme, and those affected can make a claim directly with the FSCS.

The FSCS can pay up to £85,000 in compensation.

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