FINANCIAL advisers who targeted British Steel pensioners in 2017 when the company began to restructure its pension scheme, should be investigated for fraud by the police, says a Gwent MP.

Blaenau Gwent MP Nick Smith - leading a parliamentary debate this morning - called on police forces in Wales to get involved, and said cases where pensions were mis-sold were actually “complicated cases of fraud.”

To date, Mr Smith told MPs in the House of Commons, the Financial Compensation Services Scheme (FCSS) has paid out £1.8 million to steelworkers who were affected.

Two years ago, when the British Steel Pension Scheme began restructuring, scheme members were faced with a deadline by which they to make the choice of whether to transfer out of that scheme or not.

Mr Smith said that amid the uncertainty caused by this situation, “pensions sharks soon began to circle around key steelworking sites across south Wales and the rest of the country.”

He cited an example of a constituent of his who was targeted by a financial adviser at the family's caravan, while they were enjoying a family holiday.

Mr Smith said that although many steelworkers were tempted by promises of schemes with better returns, many of these turned out to be high-risk investments which also came with a large fee.

A total of 7,800 steelworkers transferred out of the British Steel scheme he said, and 872 of these transfers were arranged by firms that were eventually ordered to stop advising by the Financial Conduct Authority (FCA).

“One steelworker lost almost £200,000. Many others lost tens of thousands of pounds. Many suffered incredible stress and anxiety,” said Mr Smith.

He has been calling for action since news of the scandal broke and is now calling for police involvement if the FCA is unable to secure justice for those targeted.

“If the FCA isn’t going to do it, local police forces in south Wales need to pursue what appear to be complicated cases of fraud,” he said.

“The crimes are committed locally, the losses are clear, often substantial, and those responsible are identifiable.

“So, I call on police forces across south Wales to open files and thoroughly investigate these cases and whether they amount to fraud.

“Criminal investigations have to start. If they don’t, I would call on the forces to state publicly why not.

“We need to make sure that hardworking people see their hard-earned money better protected in the future.”