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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Viewing Consumer Duty through the vulnerability lens

Viewing Consumer Duty through the vulnerability lens

Clients can be vulnerable in many ways

Mark Sanderson
clock 14 August 2025 • 4 min read
Why the FCA's data request demands more than compliance

Why the FCA's data request demands more than compliance

Shift towards data-driven regulation arrives at a 'pivotal juncture'

Claire Cherrington
clock 31 July 2025 • 4 min read
The FCA and non-financial misconduct: Updated rules and guidance

The FCA and non-financial misconduct: Updated rules and guidance

'The FCA hopes that the proposed amendments will increase clarity and consistency'

Claire Cross
clock 29 July 2025 • 4 min read