- Get a ballpark figure
Redress provisioning gives you an initial idea of how much compensation you might need to pay out, which can help with your forecasting.
On the plus side, these types of calculations tend to be relatively low in complexity and can be completed without any time-consuming data gathering. As a result, experienced providers like TCC can turnaround a lot of cases in a short space of time.
- Dig deeper
If you already know the scale of the problem, or you just want a more accurate figure, then we’d recommend getting full redress calculations done.
This is where things can get a bit more complicated, particularly when there’s a number of different receiving funds.
In these instances, outsourcing to an independent party who are used to dealing with more complex redress projects will give you a more robust calculation, which is important for high-profile cases like BSPS.
- Keep British Steel cases front of mind when on the acquisition trail
The historical sale of DB transfers, and particularly BSPS cases, can be a real issue for advice business acquisitions. Many of the acquiring firms we’ve worked with will either change the basis of the deal or pull out completely if significant liability is uncovered. So, it helps to include some calculations in your due diligence process for complete visibility of the risks – and a more accurate price!”