The Financial Conduct Authority (FCA) has proposed some updates to its current methodology for calculating redress for unsuitable pension transfer advice, including the British Steel Pension Scheme (BSPS) redress scheme, to help ensure the guidance reflects actuarial best practice, reduces the impact of market volatility and is responsive to consumers’ individual circumstances.
In a consultation published on Tuesday (2 August), the body said that it had strengthened its view that "redress should be paid into the consumer's personal pension where possible to ensure it is used to make up pension shortfalls", and had launched this consultation to explore how this could work in practice. Redress aims to put consumers back in the position they would have been in had they remained in their DB scheme, the FCA said, and the consultation explores several ways in which that objective can be met including reinstatement into the original DB pension scheme, requiring firms ...
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