The UK’s financial regulator is to be investigated by the parliamentary spending watchdog over its handling of a multimillion pound pension scandal which has left thousands of steelworkers facing retirement losses.

Read also UK. 39% of DC schemes failing to take account of ESG in default strategies

The National Audit Office on Wednesday announced a probe into the Financial Conduct Authority’s activities in relation to the British Steel Pension Scheme (BSPS), dating back to 2017.

Read also UK. Survey highlights lack of pension tax awareness amongst DC savers

The first such investigation into the FCA’s handling of an individual financial scandal follows accusations from Welsh MPs that failures and delays in the FCA’s regulation of authorised independent financial advisers contributed to thousands of former members of the BSPS being wrongly advised to give up valuable guaranteed pensions.

Read also How Green is Your Pension?

MPs have previously criticised the FCA for its handling of other financial calamities, including the 2019 collapse of minibond issuer London Capital & Finance, which they said demonstrated a lack of individual accountability among regulators.

The FCA, which acknowledges that many steelworkers received unsuitable advice, is now encouraging up to 7,700 ex-BSPS members to revisit pension transfer recommendations they received and complain if they have concerns. It has held one-on-one meetings with some of those affected. Experts estimate the total redress bill might reach hundreds of millions of pounds.

Read More @Ft