The FCA is to consult on whether consumers deserve more compensation for unsuitable advice on pension transfers

Mark Sands
Follow Mark
The FCA is worried that current rules for compensation no longer work for consumers

City watchdog the FCA is to consult on how redress is calculated for unsuitable pensions transfer advice.

The FCA revealed this morning that it would consult in the autumn for workers advised to transfer out of defined benefit schemes.

Current rules were set up by the Pensions Review in the 1990s, and were designed to put consumers back in the position they would have been in had they stayed in their DB scheme.

Read More: Gender pay gap narrowing? Not if you're retiring this yea

However, the FCA says it is concerned the way redress is calculated no longer achieves this.

Following consultation, the FCA hopes to reach conclusions on any reforms by next Spring.

In the meantime, firm handling pension transfer advice complaints are being told to make a provisional offer, with a view to further responses next year.

Read More: Defined benefit pension hole deepens to over £380bn following Brexit vote

Related articles