FCA pays PwC £75k for DB transfer redress report

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The FCA has paid PwC at least £75,000 to review how clients who receive bad pension transfer advice should be compensated.

The regulator set out its proposals in March for updating its methodology to calculate redress for customers who were given unsuitable advice to transfer out of a defined benefit pension scheme, after asking PwC to offer recommendations.

In a Freedom of Information request dated in April and released yesterday by the regulator, the FCA said as at 21 March it had paid PwC a total of £74,703.

The FOI response adds: “Please note, we have not received the final invoice for this work and so the final amount may be higher.”

The FCA declined to comment on what it paid PwC.

The FCA asked for the PwC review after expressing concerns that current redress systems had dated badly since being developed for the Pensions Review of the 1990s.

The regulator is aiming to make more allowance for enhanced transfer values, the freedom to take tax-free cash, gender-neutral annuity rates and other features of the current pension landscape, to be closer to putting consumers back in the positions they would have been without unsuitable advice.

PwC recommended the same core ideas after suggesting redress should continue to be calculated as a cash amount.

The FCA’s proposals are currently out to consultation, which closes in June, before finalised guidance is issued in the Autumn.