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FCA tells another firm to cease DB transfer advice

Northampton-based firm latest to have requirement to stop DB transfer advice placed on it by regulator


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.

David Williams director Ian Lowe says: “Following discussions with the FCA we are reviewing aspects of our advice process around transfers of safeguarded benefits. Clients have been kept fully informed and all other aspects of our business are continuing as normal.”

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.

Follow the money: Where are advisers going wrong on DB transfers?

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.



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

  1. Julian Stevens 31st July 2017 at 2:05 pm

    Volunteered or else!

  2. We are not being given the reasons, which would assist in helping others know if their processes are up to the job.
    There does seem to be a common theme, that of undertaking other advisers clients for the advice, something we have refused to do. We either keep the client for that area of business or we do not transact.

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