Another advice firm has agreed to stop advising on defined benefit pension transfers as the FCA continues its review of the market.
Northampton-based David Williams IFA will “immediately cease to provide advice in relation to the transfer, or conversion, of safeguarded benefits under a pension scheme to flexible benefits” according to its FCA register entry.
It is understood that the requirement was made voluntarily with the FCA, and that discussions focused on how the firm conducted transfer value analysis, after a visit from the regulator as part of its ongoing multi-firm supervision exercise over DB transfer advice.
The 14-adviser chartered firm lists on its website that it is open to partnering with other financial advisers on “complex pension transfer and drawdown cases” due to its experience and qualifications where another adviser may lack the regulatory permissions.
However, it is understood that David Williams IFA does not execute advice on behalf of third parties or contract out advice.
A number of service suspensions have occurred so far in the regulator’s review over the use of outsourcing arrangements.
Selectapension has been the biggest name involved, as it had to suspend DB advice execution after the FCA reviewed its outsourced advice partner CFPML. Report writing and transfer analysis services at the The Selectapension Bureau Service remain in place.
Financial Solutions Midhurst also agreed to cease its DB transfer advice temporarily as it is understood that the FCA reviewed its appointed representative and pension transfer specialist advice firm Heather Dunne IFA.
The FCA included 92 firms in its DB transfer advice review, visiting nine of those. It is currently consulting on updating its rules around giving advice on safeguarded benefits.
The FCA declined to comment.
We are debating what next for DB transfers at Money Marketing Interactive, which is being held at the Majestic Hotel in Harrogate on 14 September. To join over 100 advisers and register to secure your free place, click here.