British Steel  

Implications of the British Steel consumer redress scheme

  • Explain the background to the BSPS scandal.
  • Identify issues raised about FCA consultation into BSPS redress.
  • Explain wider implications of FCA consultation.
CPD
Approx.30min

Losses on DB transfer from other schemes are typically much higher. 

As such, assessing a suitable reserve for a book of non-BSPS transfer advice requires specialist support to identify the various factors that influence pensions redress.

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In summary

There is no doubt the BSPS situation has shone a light on DB pensions redress, and this is a helpful development to the extent that it has generated industry scrutiny of the redress calculation methodology. 

It will now be important to watch developments in this area and to consider how these may impact on wider pensions redress.

Sarah Abraham is a consultant actuary, head of redress solutions at OAC

 OAC are actuarial consultants who offer a range of specialist services relating to pensions redress, including compensation calculations, training on the factors affecting the magnitude of redress and assessing redress risk.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. True or false, the FCA is proposing a consumer redress scheme, under which the advice given to transferring individuals between May 2016 and March 2018 will be reviewed, irrespective of whether the individuals were unhappy with their outcomes.

  2. Why will the FCA’s redress plans be wider-reaching than BSPS transfers?

  3. Which of the following is NOT one of the key issues that have come up in feedback on the FCA’s consultation?

  4. True or false, PS22/7 sets out temporary asset restriction rules for companies that advised BSPS transfers.

  5. Why does Sarah Abraham advise caution regarding the application of 16 per cent of the aggregate transfer value when trying to calculate for a redress payment?

  6. What is a feature within the BSPS that means redress payments are kept relatively low?

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You should now know…

  • Explain the background to the BSPS scandal.
  • Identify issues raised about FCA consultation into BSPS redress.
  • Explain wider implications of FCA consultation.

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