GC17/1: Changes to the way firms calculate redress for unsuitable defined benefit pension transfers

Open consultation: GC17/1
10/03/2017
Consultation closes
10/06/2017
10/06/2017
Finalised Guidance
Autumn 2017

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.

Show GC17/1 (PDF)

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.

Who this applies to

Our proposals will most directly impact on:

  • consumers who were given unsuitable advice to transfer out of a defined benefit pension scheme to a personal pension, and who have not yet accepted redress on a full and final settlement basis
  • firms that provide advice on transfers from defined benefit pension schemes to personal pensions
  • software providers for these calculations
  • professional indemnity insurers

What you need to do

This consultation has now closed.

Next steps

We will carefully consider your feedback to this consultation and issue a response in Autumn 2017.