The Financial Conduct Authority has announced its intention to consult in autumn 2016 in respect of an update to its methodology used to calculate the level of redress due in cases of unsuitable advice on transfers from defined benefit occupational pension schemes to personal pensions.

The current redress methodology was developed in the 1990s and the FCA is concerned that it may no longer achieve the objective of putting consumers back in the position they would have been in had they remained in the defined benefit scheme.  Where a firm is currently handling a complaint in connection with a pension transfer or receives a complaint before the outcome of the consultation is known, the FCA does not expect it to be fair for the firm to attempt to settle the complain on a full and final basis.  The FCA has stated that it recognises that this may cause a delay in redress and so, to minimise such delay, is aiming to reach its conclusions by spring 2017.