DB pension transfer redress: FCA statement on RPI changes
The FCA has published a statement about its intention to amend, in mid-March 2021, its finalised guidance (FG17/9) for firms on how to calculate redress for unsuitable defined benefit (DB) pension transfers. It is making the amendments to reflect changes to the way that the Retail Prices Index (RPI) inflation measure is calculated, which the government announced in its November 2020 Spending Review. These changes are due to take effect from February 2030.
The FCA explains that the finalised guidance refers to both the RPI and the Consumer Prices Index (CPI), an alternative inflation measure. The RPI change means that, from February 2030, the -1% adjustment to the RPI assumption used in the guidance to calculate the CPI assumption will not reflect the assumed difference between the RPI and the CPI. It will be too large, and some consumers may not receive the correct amount of redress. This will affect consumers who transfer
<p><span>The European Banking Authority (EBA) yesterday published its biennial Opinion on risks of money laundering and terrorist financing (ML/TF) affecting the European Union s financial sector. The ML/TF risks identified by the EBA include those that are applicable to the entire financial system, for instance the use of innovative financial services, while others affect specific sectors, such as de-risking. The list also includes ML/TF risks that emerge from wider developments such as the COVID-19 pandemic that has an impact on both firms’ AML/CFT compliance and competent authorities’ supervision. The Opinion, therefore, sets out recommendations to competent authorities aimed at closing these gaps.</span></p>
The European Banking Authority (EBA) today published its biennial Opinion on risks of money laundering and terrorist financing (ML/TF) affecting the European Union's financial sector.