FCA guidance consultation on pensions transfer redress methodology

Regulatory Updates | 13/03/17

The FCA has published a guidance consultation on changes to the way firms calculate redress for unsuitable defined benefit (DB) pension transfers. The FCA announced in August 2016 that it intended to consult on updating the methodology used to calculate the levels of redress due in cases of unsuitable advice on transfers from defined benefit pension schemes to personal pensions. The FCA explains that any changes to the methodology will apply to future redress payments. Where redress is due, a complaint should not be settled on a “full and final” basis until the outcome of the consultation is known. Consultation closes on 10 June 2017 with an intended response to be issued in autumn 2017.