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CONRED 4.2 Consumer redress scheme: identifying scheme cases

Deadline to complete the steps in this section

CONRED 4.2.1R

1No more than 1 month after the scheme effective date, a firm must take the first and second steps set out in this section. The deadline for the third step is set out at CONRED 4.2.8R.

First step: identify scheme cases

CONRED 4.2.2R

1The first step is for a firm to identify all scheme cases. A scheme case is a case that satisfies each of the following conditions:

  1. (1)

    a firm gave a consumer advice in relation to a BSPS pension transfer during the relevant period;

  2. (2)

    the advice in (1) was to transfer their BSPS pension benefits;

  3. (3)

    the suitability requirements applied to the advice in (1);

  4. (4)

    the consumer subsequently transferred their BSPS pension benefits;

  5. (5)

    the consumer had not, prior to the scheme effective date, accepted an offer of redress from the firm or other person in full and final settlement of all potential claims arising out of the advice in (1);

  6. (6)

    the consumer had not, prior to the scheme effective date, asked the Financial Ombudsman Service to deal with a complaint against the firm arising out of the advice in (1);

  7. (7)

    the advice in (1) was not reviewed in a past business review carried out by a skilled person where the firm had assessed the firm’s advice using the FCA DBAAT and notified the consumer of the following:

    1. (a)

      the outcome of that review (whether in the firm’s view the advice met the suitability requirements); and

    2. (b)

      that the consumer is entitled to complain to the Financial Ombudsman Service if they disagree with the firm’s assessment;

  8. (8)

    the law applicable to the obligations of the firm arising in connection with the advice in (1) is that of a UK territory (that is, England and Wales, Scotland or Northern Ireland) (see CONRED 4.2.5R); and

  9. (9)

    if the applicable law in (8) is that of England and Wales or Northern Ireland:

    1. (a)

      the consumer’s BSPS pension transfer was on or after 24 November 2016; or

    2. (b)

      the consumer did not know, and could not have reasonably been expected to know, before 24 November 2019 that they had cause for a claim; or

  10. (10)

    if the applicable law in (8) is that of Scotland:

    1. (a)

      the consumer’s BSPS pension transfer was on or after 24 November 2017; or

    2. (b)

      the consumer did not know, and could not have reasonably been expected to know, before 24 November 2017 that they had cause for a claim.

CONRED 4.2.3R

1The conditions in CONRED 4.2.2R(6) does not apply if a firm is declared in default.

Guidance on excluded scheme cases

CONRED 4.2.4G

1CONRED 4.2.2R(1) does not include a case where the firm advised the client not to transfer their BSPS pension benefits, or to remain in the BSPS, and where the firm or a different firm subsequently arranged the pension transfer.

Applicable law

CONRED 4.2.5R

1For the purposes of CONRED 4.2.2R(8), the applicable law is:

  1. (1)

    that of the UK territory where, in connection with the advice:

    1. (a)

      the consumer has agreed to the firm’s terms of business; and

    2. (b)

      these include a clause providing for the application of the law of a particular UK territory (that is, England and Wales, Scotland or Northern Ireland); or

  2. (2)

    (if (1) does not apply) that of the UK territory where the firm and the consumer both habitually reside and where the advice is given; or

  3. (3)

    (if neither (1) nor (2) apply) that of the UK territory in which the consumer is habitually resident, provided the conditions in CONRED 4.2.6R(1) to (2) are satisfied; or

  4. (4)

    (if neither (1), (2) nor (3) apply) that of the UK territory in which the firm gave the advice.

CONRED 4.2.6R

1The conditions referred to in CONRED 4.2.5R(3) are that:

  1. (1)

    in the UK territory in which the consumer has their habitual residence, either:

    1. (a)

      the contract under which the advice was provided was preceded by a specific invitation addressed to the consumer, or by advertising, and the consumer took all the steps necessary to engage the firm; or

    2. (b)

      the firm or its agent received the consumer’s order; or

  2. (2)

    the advice was provided at least in part in that UK territory.

Second step: send letters to consumers

CONRED 4.2.7R

1The second step is for a firm:

  1. (1)

    in relation to cases which do not meet any one of the conditions in CONRED 4.2.2R(1) to (10) (subject to CONRED 4.2.3R) (non-scheme cases), to send to the consumer a redress determination in the form set out in CONRED 4 Annex 1R;

  2. (2)

    in relation to all scheme cases, to send to the consumer a letter in the form set out in CONRED 4 Annex 2R.

Third step: acknowledge opt-outs

CONRED 4.2.8R

1Where a consumer has responded to a letter sent by a firm in accordance with CONRED 4.2.7R(2) stating that they do not wish to have their case considered under this consumer redress scheme, the firm must, within 5 business days of receiving the response, send the consumer a redress determination in the form set out in CONRED 4 Annex 3R.

CONRED 4.2.9R

1The effect of a consumer stating that they do not wish to have their case considered under this scheme and opting out of it is that the scheme case no longer falls within the subject matter of the consumer redress scheme created by this chapter.

CONRED 4.2.10G

1After any opt-out, a firm should handle any complaint from a consumer in relation to advice about a BSPS pension transfer other than in respect of a redress determination in accordance with the complaint handling rules in DISP.