We are consulting on updating the methodology used to calculate the levels of redress due in cases of unsuitable advice on transfers from defined benefit pension schemes to personal pensions.
Last year, we stated our intention to consult on our redress methodology for pension transfers. We subsequently appointed PricewaterhouseCoopers LLP (PwC) to provide a review of the existing methodology, and provide recommendations for a new methodology. Having considered PwC's recommendations, we are proposing to update the current redress methodology, including the underlying assumptions, so that it takes account of changes to the pensions environment.
The proposals also intend to make it more likely to put consumers back into the position that they would have been in if they had not been given unsuitable advice to transfer out of their defined benefit pension scheme.
Our proposals will most directly impact on:
This consultation has now closed.
We will carefully consider your feedback to this consultation and issue a response in Autumn 2017.