LV= in talks over DB pension transfer service


LV= is planning to launch an advice service for defined benefit pension transfers, Money Marketing understands.

The pension provider is in talks with actuarial consultancy Hymans Robertson, which advises trustees of DB schemes, to create a referral system in which LV= will provide the advice required by legislation.

New FCA rules mean people transferring out of DB schemes with benefits worth £30,000 or more must first speak to a financial adviser holding the pension transfer specialist qualification.

The pension reforms have boosted the appeal of defined contribution pension, increasing members’ appetite to transfer out of DB schemes.

However, the tighter regulatory framework on transfer advice and fears over future claims from so-called insistent clients have restricted the supply of advisers willing to work in the area.

LV= will provide interested scheme members with guidance on the trade offs between a DB pension and a DC arrangement, as well as giving advice to those who want to proceed, Money Marketing understands.

LV= and Hymans declined to comment.

Separately, LV= this week announced it has invested in a majority stake in automated advice firm Wealth Wizards.

The insurer has not disclosed the size of its holding or how much it will inject into the business, but it does say the deal will enable Wealth Wizards to develop a white-labelled platform.