FCA has confirmed its plans to start a periodic review of its FG17/9 on how firms should calculate redress for unsuitable DB pension transfer advice. It will start the review by the end of 2021, in line with its original intention to review at least every 4 years.
The guidance aims to help firms assess the position a consumer would have been in had the advice the firm gave complied with regulatory requirements.
FCA will consult on any changes it might wish to make following its review, and in the meantime expects firms:
- to assess complaints about unsuitable advice fairly, consistently and promptly;
- calculate any redress due in line with the current approach; and
- comply promptly with any offer of redress that the consumer accepts.
It has also offered specific guidance that calculations should be allowing for adviser and product charges, and the impact on the consumer’s tax position and/or benefits entitlement and any calculations made not meeting FCA’s expectations should probably be reviewed, and any additional redress offered to relevant consumers.