On 2 August 2022, the Financial Conduct Authority (FCA) published Consultation Paper 22/15 ‘Calculating redress for non-compliant pension transfer advice’ (CP22/15).
In CP22/15 the FCA is proposing to set up a redress scheme for people who transferred out of the British Steel Pensions Scheme (BSPS). This should see firms pay over £70 million of compensation to British Steel workers.
The consultation also sets out the FCA’s proposals for calculating redress for their proposed consumer redress scheme for former BSPS members. Calculations under the scheme will generally follow the same methodology as all DB transfer cases, but the FCA has adapted certain elements to reflect the particular circumstances of the BSPS scheme.
Finally, the FCA also sets out their proposals for a redress calculator if they decide to set up a scheme. This will make calculations more consistent, ensuring former BSPS members receive fair and quick redress, and reduce the overall cost of calculations.
The deadline for comments on CP22/15 is 20 September 2022.