FG17/9: Guidance for firms on how to calculate redress for unsuitable defined benefit pension transfers

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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.