Paul Steel Banned From Financial Services and Fined £850,000 for Unsuitable Pension Advice

Paul Steel of Estate Matters Financial Ltd (EMF) has been barred from working in the financial services sector by the Financial Conduct Authority (FCA). To settle proceedings with the FCA, he will pay £850,000 to the Financial Services Compensation Scheme (FSCS) for providing unsuitable advice to customers about transferring out of defined benefit pension schemes, including the British Steel Pension Scheme. He showed a lack of honesty and integrity by selling EMF’s client book to himself for less than its value, precluding consumers from seeking redress. Over 480 customers were given defined benefit transfer advice by EMF between 2015 and 2018 resulting in over £140m of pension assets transferred, with 86% of this advice failing to meet the required standards. The FCA upon looking into these matters, sought and obtained a freezing injunction along with bringing proceedings in the High Court. Mr Steel agreed for his penalties to be settled through paying the FSCS rather than the costs of the High Court proceedings. As a result, customers who lost money from their advice are likely to be compensated.