FG17/9: Guidance for firms on how to calculate redress for unsuitable defined benefit pension transfers
This is our finalised guidance for firms on how to calculate redress for unsuitable defined benefit pension transfers. The summary of feedback outlines the response to our consultation.
Show summary of feedback received (PDF)
In GC17/1, we consulted on guidance to update the methodology used to calculate redress for unsuitable pension transfers from a defined benefit pension scheme to a personal pension. Our proposals resulted from a review of the existing methodology carried out by PricewaterhouseCoopers LLP (PwC).
Who this applies to
This new guidance may directly impact on:
- consumers who were given unsuitable advice to transfer out of a defined benefit pension scheme to a personal pension
- firms that provide advice on transfers from defined benefit pension schemes to personal pensions
- software providers for these calculations
- professional indemnity insurers
This guidance is effective from 27 October 2017 and assumptions should be taken from 1 October 2017, then updated quarterly in line with the guidance.