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.
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.