Phase 2 Pensions Review: Good progress made but deadline less than a year away

The quarterly update shows that two thirds of consumers in phase 2 of the review have had their cases completed and 3.3 billion in redress has been paid. However, despite the overall steady progress figures show that firms are so far completing more transfer cases than the potentially more difficult opt-outs and non-joiners.

Philip Robinson, Director of the Pensions Review, said:

Overall progress amongst the larger firms is good with the exception of a few laggards but small IFAs are falling behind the rest of the industry. Those firms that are currently foot dragging will find the regulator paying them close attention.

If the review is to be completed on time it is vital that firms act now to move their more complex opt-out and non-joiner cases forward to ensure they are dealt with promptly. With under a year to go there is a lot more to do if firms are to get on top of the outstanding case load.

The FSA is taking action to encourage a faster response from occupational pensions schemes to assist firms to complete their cases. In order to ensure that there are no potential log jams in the information flow, we have met with the Occupational Pensions Regulatory Authority, the National Association of Pension Funds and representatives of the major occupational schemes to emphasise the importance of them providing timely information to firms conducting the review.

The FSA will be writing to the major occupational schemes to explain why their help is needed and ways they can help. There is also a factsheet available to employers and trustees of occupational schemes, which explains how occupational schemes can assist in putting things right for people in the second phase of the personal pensions mis-selling review.

The overall phase 2 figures based on the industrys June returns are as follows:

Notes for editors

1. The personal pensions mis-selling review is aimed at people wrongly sold personal pensions between 29 April 1988 and 30 June 1994. Mis-selling occurred when people who would have been financially better off at retirement in their employers pension scheme were advised to leave or not join their employers pension scheme (opt-out and non-joiner cases), or where they transferred pension benefits from a previous employers scheme and out a personal pension plan instead. The priority phase of the review of mis-sold pensions involved older consumers at or near retirement. Phase 2 extends the review to younger consumers, typically in their 30s and 40s.

2. The factsheet for occupational schemes entitled The Review of Personal Pensions: Why your help is vital, can be obtained by sending a large stamped addresses envelope to Robert Jacobs, Customer Relations, 4 Swallowfields, Welwyn Garden City, Herts AL7 1JD.

3. Details of progress of phase 2 of the Pensions Review (based on March 2001 returns) :

	Total	Product Providers	Networks and Large IFAs	Small IFAs
Requests for Review	1,227,727	1,070,906	98,937	57,884
Cases for Review (a)	858,225	757,241	59,715	41,269
Assessments complete(offers made plus cases where no redress due)	542,116	482,036	40,306	19,774
As a % of (a)	63.17%	63.66%	67.50%	47.91%
Offers made	441,605	400,202	33,195	8,208
Offers accepted	381,376	343,234	30,623	7,519
Amount of redress accepted	3,309m	2,902m	331m	74m

4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

5. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.