Emma RadmoreThe FCA has received information that a number of firms are not calculating defined benefit pension redress correctly. The information which suggests that these firms are not considering ongoing fund costs and/or fully allowing for ongoing adviser charges in the calculations. Some may also be unfairly terminating consumer contracts after consumers make a complaint.
The FCA has updated its statement on pension transfers redress guidance to include further detail to clarify how firms should calculate redress payments. It has also added 3 new questions to its FAQs (Q10-12).