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Aifa wants more time for IFAs to recalculate redress

Aifa is urging the FSA to push back the final deadline for pension review cases involving windfall benefits, arguing that IFAs need more time to recalculate redress in these cases.

In the trade body&#39s response to CP126 – The Treatment of Windfall Benefits for the Personal Pensions Review, the FSAVC Review and Mortgage Endowment Complaints – it claims that the deadline

is unworkable because of the decision to exclude windfall payments from redress decisions.

It says IFAs will have to ask life offices to recalculate the redress in these cases, which will take them past the current proposed deadline of December 31.

The pension review is due to be officially completed by June 31 but the FSA has proposed extending it until December for those cases involving windfalls. Aifa says the deadline needs to be extended further until March 31, 2003.

The FSA has said it will decide its policy in this area by the end of July. It calculates that there are a maximum of 60,000 outstanding cases affected.

The change stems from the much publicised High Court ruling last August

in the Needler v Taber case, which resulted in the decision that windfall payments cannot be included in the pension review.

Aifa&#39s response to the consultation paper says: “We think it will be difficult for many firms to meet the proposed deadline and suggest that March 31, 2003 would be more attainable.”

FSA spokeswoman Jackie Blyth says: “We have not decided our policy yet and will take into consideration all submissions when putting it together.”

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