The Association of British Insurers (ABI) has welcomed today’s progress report from the Financial Services Authority (FSA) on Phase 2 of the Pension Transfers Review.

Commenting, Mary Francis, ABI’s Director General, said:

“These latest progress figures show that firms are on track to meet the targets for Phase 2 of the Review. But there is no room for complacency. Completion of this important work remains a priority for the industry.”

The FSA has also announced revised cost estimates for the Review. An estimated total of around £13.5 billion is made up of £4 billion redress costs for Phase 1 (this figure is unchanged from the previous estimate), £7.5 billion for Phase 2, and £2 billion administration costs.

Notes

Enquiries to-

Suzanne Moore 020 7216 7411 (Mobile: 07712 841183)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147667)



1. An ISDN line is available for broadcasts.
   
   
2. The cost of redress for Phase 2 of the Review has increased from the previous estimate of between £3.4 billion and £5.8 billion to £7.5 billion. This is due to: a change in financial conditions since early 1998, when the previous estimate was made; the revised guidance on the SERPS adjustment for pension transfers (as announced by the FSA in June), and the better information now available on the number of cases being reviewed in Phase 2.