FCA warns firms on DB pension redress calculation rules

‘Small number’ of firms not including all fees and charges

Jenna Brown
clock • 2 min read

The Financial Conduct Authority (FCA) has warned firms they must comply with its defined benefit (DB) redress calculation rules after a “small number” were found not to be including all fees and charges.

It said a minority of firms were not considering ongoing fund costs and/or fully allowing for ongoing adviser charges in the redress calculations. It pointed out, Final Guidance 17/9, released in 2017 and updated earlier this year, should be followed. The regulator also said some of these firms may also "be unfairly terminating consumer contracts after consumers make a complaint". A statement said: "We are looking into these matters and where we identify firms not calculating redress correctly, we will take action using the full range of our powers which may include appointing an inde...

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