The FCA has announced that it intends to consult in autumn 2016 to update the methodology used to calculate the levels of redress due in cases of unsuitable advice on transfers from defined benefit (DB) occupational pension schemes to personal pensions.
The current redress methodology used by the industry and by the Financial Ombudsman Service is intended to put consumers back in the position they would have been in had they stayed in the DB scheme. The FCA is concerned that the redress methodology may no longer achieve this objective so has decided to consult on whether to update it. Any changes to the redress methodology will apply to future redress payments. The FCA recognises that for some consumers this may cause a delay in redress. To minimise delay, the FCA expects to consult in the Autumn and reach conclusions by Spring 2017.
View FCA statement on redress methodology for pension transfers, 3 August 2016