Bank of England

FCA releases updated pension redress guidance

The FCA has announced an update to the method used to calculate the amount of redress due. The new method will apply in cases where it's been judged that advice was unsuitable for defined benefit pension transfer.

The update in methodology applies to the application of the Consumer Price Index in calculating pension increases when determining if a loss has been incurred as a result of transferring pension benefits.

Our pension calculation software provider has implemented these changes and all defined benefit pension transfer calculation claims with effect from 12 April 2021 are performed in line with the updated FCA guidance.

In line with the FCA announcement, we will be re-visiting affected claims that were calculated from 1 January 2021. If your claim is one of those affected, you will receive a decision letter with an uplifted compensation award (if applicable) soon. The FCA has confirmed that there is no need to re-visit claims that were calculated before 1 January 2021.

No completion date has been set to re-visit these claims. And claims that have already received the maximum compensation award will not be re-visited.

For more information, please visit the FCA website.