The FCA published Finalised Guidance 17/9 (FG17/9) in 2017, setting out how firms should calculate redress for unsuitable defined benefit (DB) pension transfers. At the time, the FCA committed to reviewing the guidance every four years, and on 1 September 2021, the FCA confirmed the following:
- Confirm that we (the FCA) intend to start a periodic review of the redress guidance by the end of 2021; and
- The FCA’s expectations of firms while the review is ongoing, including clarifying how firms should be applying or interpreting the guidance in certain areas.
Whilst the review is ongoing, the FCA has reminded firms of its expectation that they should:
- assess complaints about unsuitable advice fairly, consistently and promptly;
- calculate any redress due in line with the current approach; and
- comply promptly with any offer of redress accepted by the consumer.
To read the full FCA statement confirming the review of the pension transfers redress guidance, please click here.