Selectapension is the latest advisory firm to announced a suspension to its defined benefit (DB) transfer advice service for IFAs.
The UK-based firm is one of the largest providers of transfer value analysis (TVAS) reports for IFAs advising on qualifying recognised overseas pension schemes (QROPS)
A spokeswoman from Selectapension said the reason behind the change was because of an FCA review of its outsourcing partner CFPML.
In a statement on its website, Selectapension Bureau Services said that it has “temporarily suspended the DB Transfer Advice Service following an audit from the FCA.”
The company said that its SBS Report Only service is unaffected by the changes.
“Following the recent FCA review of our outsource advice partner CFPML, the regulator recommended making some changes to processes which we are currently implementing,” a company spokesperson said. “Full permissions remain in place while CFPML are working with the regulator on their ongoing review.
“We took the decision to suspend the SBS service for new pension transfer requests so the partner firm could deal with the outstanding backlog and to allow CFPML to update their processes.”
The company apologised for “any inconvenience caused” adding that it is working hard to deal with all pipeline cases. It added that is is not connected in any way with the Selectapension Ltd subscription services where it will continue “business as usual”.
The Financial Conduct Authority (FCA) has been carrying out a multi-firm supervision exercise into DB transfer advice and as part of this has visited financial advice companies that have increased the number of pension transfers. It is estimated that as many as 100 firms are affected.
As reported, last month, the FCA has published proposals on advice relating to pension transfers where consumers have safeguarded benefits, primarily transfers from DB to defined contribution (DC) pension schemes.
Earlier this year international advisory firms Holborn Assets and deVere agreed to stop providing TVAS reports for third parties.
As reported, last month also saw Glasgow-based Intelligent Pensions agree with the FCA to stop providing advice on DB transfers and Welsh advice firm Strategic Wealth UK was asked to stop all pension business, until it completes a so-called Section 166 skilled person review.