Calculating Redress: What we do and how we do it

This article offers support to IFAs seeking redress calculations, particularly in the context of the BSPS redress scheme.

It highlights the challenges of understanding and applying the complex DBAAT guidance and offers an independent DBAAT review service at £1250+VAT per case.

If the DBAAT advice is deemed unsuitable, a redress calculation can be done using either the FCA calculator or the Congruent calculator for an additional £1250+VAT.

The service includes a full report with a personalised video explanation for the client and IFA, saving time and effort for firms.

This article provides and example of how we go about providing support to IFAs wanting a redress calculation done – and as a topical example, supporting advice firms with current BSPS redress scheme

The BSPS redress scheme (PS22/14) entered its second quarter (July 2023) using the FCA redress calculator.

Without going into too much detail here, firms have to review cases caught within the scheme by having a DBAAT case review done and then, if found unsuitable, a calculation of redress using the FCA calculator.

Remember the file must be reviewed by the 30th September 2023 with the BSPS DBAAT.

I’d say we’ve spent 100’s of hours on PS22/24 (maybe even 1000 hrs as a team) understanding and applying the DBAAT guidance into cases and understanding and using two different calculators for redress calculations since it all came to be last year.

There are lots of people in the same situation. I’m not sure how the FCA calculates the cost of learning and understanding and applying over 300 pages of detailed guidance, but they don’t do a good job in estimating the man-hour cost of getting up to speed with these calculations.

Some firms have contracted that to us at EPC.

We review the cases and complete the DBAAT. We are wholly independent, qualified and experienced in DBAAT reviews (with practical real life experience of DB TV advice). We look at each case in detail. We spend time on each case. We review each case carefully and consider the evidence on the file AND the advice process – with the benchmark being the standard expected of a reasonably competent firm carrying on a similar business.

The cost of each DBAAT review, which is peer reviewed and checked, is £1250+VAT per case.

That can save you a lot of time and effort in reinventing the DBAAT wheel in your firm. (never mind the tears).

Once the DBAAT is completed and if the DBAAT advice is declared unsuitable, a redress calculation may be required.

That calculation could be done using the FCA calculator (PS22/14 – with the FCA calculator updated quarterly in line with PS22/13) or we could use the Congruent calculator, depending on specific circumstances of the case and requirements of the IFA.

If a redress calculation is required, we compile a full report, with the calculation and personalised video recording of an explanation of the calculation for the client (and IFA).

This is sent to the IFA for review and forwarding onwards to the client.

We charge £1250+VAT (July 2023) for that full report and calculation.

How we can help

We can help you and save you and your firm a lot of time and energy. We provide an overview of the files at the end of the project and highlight any common themes that can be addressed as part of your training and competency plan. Please drop us a line for a virtual coffee anytime.

Contact us

We love dealing with difficult and complex pension questions.
And we are always up for a virtual coffee chat. Drop us a line anytime.