The FSA is expected to make a decision by August on whether to reopen Serps transfer cases completed...
The FSA is expected to make a decision by August on whether to reopen Serps transfer cases completed before the PIA admitted its guidance was flawed on 17 December 2000.
FSA spokesperson, Jackie Blyth, said she expected a decision to be made within the next month or two.
Aifa has warned that the FSA would be setting a dangerous precedent if it ordered the reopening of cases completed before the PIA admitted the flaw.
Regardless of whether or not they were affected by any Serps adjustment cases, intermediaries who fulfilled their obligations to complete checking before the PIA admitted the mistake will have to repeat the process before the FSA's deadline for all Serps transfer cases in June 2002.
Aifa has also voiced concern about who will pay for the redress of these additional mis-sold Serps transfers, although the FSA has stressed they only constitute some 25,000 of the 1.2 million cases cited in the Pensions Review.
Tracey Mullins, director of public affairs at Aifa, said: 'The FSA is setting a precedent and it creates a lack of confidence in the regulator. The guidance was at fault. People were completing cases in good faith, following FSA regulations, and their mistake will have to be paid for by the industry.'
It is believed that Aifa's smaller members in particular will suffer unduly, given their limited resources, by having to check manually whether or not any of their cases are actually involved.
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