International advice firm deVere UK has agreed to stop providing pension transfer reports as the FCA launches an investigation into the firm.
The FCA will conduct a so-called ‘skilled person review’ into the firm’s pension transfers after deVere entered a voluntary requirement with the regulator to “cease providing advice”.
A spokesman for deVere says: “deVere UK wrote directly to the FCA on this matter and this resulted in a meeting. The firm, recognising the FCA wanted to strengthen procedures, entered into a voluntary requirement to cease providing advice in this arena.”
He adds: “deVere UK, in complying with the new FCA requirements, worked with divisions within deVere in seeking to represent clients’ interests cross border. No advice or information was provided to any other third party company.”
The spokesman says the company “welcomes” the skilled person review, also known as a s166.
He says: “We are confident that there has been no detriment to clients, and there have been no client complaints. Working with the FCA, we have taken decisive steps to ensure our clients’ best interests have been served.”
The FCA published guidance in January where it warned that conducting pension transfers based solely on a generalised critical yield calculation will not meet its requirements.
The FCA says it expects the likely expected returns on the new investments would need to be looked at in relation to the critical yield, as well as the personal circumstances of the client. The specific receiving scheme also needs to be considered, including for overseas schemes where UK IFAs should liaise with an overseas adviser where necessary.
The FCA declined to comment.