View more on these topics

IFAs fear cost of transfers will increase after TVAS services cut

Advisers fear the FCA’s desire to crack down on unsuitable defined benefit transfers is likely to increase costs for consumers.

At the end of March the regulator published a policy statement on transfer advice that said accepting free transfer value analysis software now fell within its definition of inducements.

Subsequently, providers including LV, Old Mutual Wealth, Pru, Scottish Widows and Standard Life shelved their services to avoid falling foul of the rules.

Advisers spoken to by Money Marketing have expressed fears about the unintended consequences of the FCA’s stance.

Appleton Gerrard financial planner Kusal Ariyawansa thinks there is no harm in receiving a free TVAS report as long as the adviser knows it is not the only solution for the client.

He says: “As an adviser, you must consider all other solutions. It is therefore best to have your own independent arrangements. All costs are eventually borne by the client.”

Thameside Financial Planning dir-ector Tom Kean says his TVAS report work used to be done by Standard Life, but he has brought the service in-house even though some third-party offerings are “eye-wateringly expensive”.

He adds: “Life has got a bit more complicated and costly for the consumer because [free TVAS reports] are now an explicit cost IFAs will charge a little extra for. It is another irritation we could do without but we will probably absorb the cost.”


Signing divorce form

Support for in-house TVAS grows after free services cancelled

Around two-thirds of advisers are in favour of doing their own transfer value analysis reports in-house, according to a Money Marketing survey. Less than 30 per cent said that advisers should not conduct their own reports, while 8 per cent remained unsure. At least five firms including LV=, Pru, Standard Life, Old Mutual Wealth and Scottish […]


Scottish Widows fifth firm to suspend TVAS services

Scottish Widows is the fifth firm to halt transfer value analysis report services as the FCA looks to crack down on unsuitable defined benefit transfers. The decision follows those from LV=, Pru, Standard Life and Old Mutual Wealth after the FCA said the reports could act as inducements. The FCA published its flagship paper on […]


Old Mutual suspends TVAS service as FCA rules bite

Old Mutual Wealth has decided to halt all transfer value analysis report services as the FCA looks to crack down on unsuitable defined benefit transfers. The decision follows Standard Life, which stopped offering free TVAS reports for IFAs yesterday after the FCA said they could act as inducements. Standard Life and Old Mutual have both […]

Delivering advice and guidance in the workplace

Three advisers share their ideas and experiences of helping employees with their financial decisions The workplace is instrumental in engaging people to save for retirement. How are advisers helping employers provide advice or guidance to their employees? Telephone guidance Financial education provider and advice firm Wealth at Work recently launched a telephone guidance service to […]

Pension savings-retirement-2015

Pension over-taxing

800,000 people are at risk of being over-taxed on their pensions, writes Steve Webb, director of policy at Royal London Hundreds of thousands of people receiving company and personal pensions should check their tax code to make sure that they are not being over-taxed, according to a leading pensions firm. Mutual insurer Royal London has […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Totally agree with the articles sentiment. TVAS report is only part of the overall process and should be used only a ‘tool’ and not a reason to transfer.

  2. I was amazed to find that free TVAS was still a thing. Years ago when we first started working with Elevate we took a free Voyant license from them. After a few months we sat ourselves down, thought about what independence meant, and gave the license back, and paid for our own copies directly.

    Whilst the current situation is quite extreme (for one platform we work with the platform representative has to disclose everything we offer them when they come in, or everything except still water anyway, provided it’s tap water) we have seen over many years that with time ‘common sense’ becomes blurred, ambiguity causes standards to slide. Free provider TVAS was probably mostly fine, but sometimes not, and it isn’t something we’d have taken on in recent years.

Leave a comment