Law firm FS Legal, which is representing a number of IFAs, called on the Financial Conduct Authority last year to re-open its consultation into compensation for BSPS members claiming poorly performing bond markets have caused the value of any redress to drop.
FS Legal represents the British Steel Action Group, which is made up of advice firms facing redress bills for DB transfer advice.
The law firm said: “All firms who advised on the British Steel Pension Scheme 'Time to Choose' exercise want a swift resolution to this saga.
“The FCA have taken an eternity to introduce a scheme, which the advisory firms believe to be unfair and unreasonable. Firms do not issue claims about their regulator lightly, they do so because they have no alternative.
“The other side of this matter is the steelworkers who feel they have been very badly let down.”
Gareth Fatchett, solicitor and partner at FS Legal, told FTAdviser there is a court hearing date of April 25 to 27, which will allow claimants' “most vociferous representatives” to join the claim and make their case.
The BSAG issued a challenge to the two main claimant groups run by Al Rush and Philippa Hann of Clarke Wilmott Solicitors to join the proceedings.
“Claimants are crying foul and want the FCA and the Treasury to fund extra redress payments,” Fatchett said.
“They will not achieve this by standing on the side lines, looking in.”
However, Damian Pitts, senior associate at Clarke Willmott, said it does not speak for all steelworkers.
“We act for a significant number of steelworkers in making claims via the Fos or FSCS, but as our clients have already made (or about to make) their claims they are excluded from the FCA’s redress scheme.
“The action brought by BSAG relates solely to a challenge to the redress scheme and, therefore, as none of our clients will be covered by the redress scheme, we do not consider we have locus standi to join the proceedings.”
Meanwhile, Rush said campaigners for justice for steelworkers were advocating FCA intervention almost six years ago.
“The one thing that Mr Fatchett and I will agree on is that the FCA has failed conspicuously - if Andrew Bailey had intervened in a timely and concise manner in 2017, Gareth would not have had to make an application to the courts on behalf of scores of clients,” he said.
“Nobody wins in this, prevention would have been so much better than cure.”
