The Financial Conduct Authority (FCA) has proposed to update the methodology used to calculate redress payments for unsuitable advice given on defined benefit (DB) transfers, saying the system needed to become more 'appropriate'.
In a consultation paper out on 10 March the regulator proposed a number of changes to the methodology currently used, which, it said, would typically mean claimants would be better off. The changes include updating the inflation rates used in calculations and updating mortality assumptions. They will apply to future redress payments only and to consumers who were given unsuitable advice to transfer out of a DB pension scheme but have not yet accepted compensation. The FCA first announced in August 2016 it planned to review the methodology following concerns there were more appro...
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