View more on these topics

LV= confirms exit from TVAS market

Financial advice-planning-advice-cashflow-analysisLV= has no plans to restart its suspended transfer value analysis service over concerns it could stray into giving financial advice.

A number of providers, including LV=, froze their services after the FCA published its policy statement on defined benefit transfers in March.

In the statement, the FCA said accepting free TVAS software could be seen as a breach of strengthened inducement rules brought in under Mifid II.

It also toughened advising on transfers by making the new appropriate pension transfer analysis process more comprehensive and said it needs to be personalised to the client.

LV= managing director of the life and pensions business John Perks says these new requirements create potential risks for providers.

He adds: “Our concern is if we as a provider are personalising analysis we are entering the advice process, which should be done by the IFA and not the provider. If you put all these together it does not make sense for us to come back into the market and this is the right point to exit.”

Results published today show LV= has seen DB transfer levels drop off after a record 2017.

Figures for the first half of this year show new business sales in its life arm were down 5 per cent to £983m.

The reduction in pension sales “was expected following the high levels of DB to defined contribution transfers in 2017,” LV= says.

However, equity release sales have picked now up by 66 per cent in the first six months of 2018 to reach £88m.

Perks adds: “Although there has been a dip in DB transfers we expect them to be a key part of the market place over the next 10 years for financial planning.”

Recommended

Technology-Tablet-Tech-Computer-500x320.jpg

Just launches TVAS service

Retirement product provider Just Group has launched a digital platform that will offer transfer value analysis services. Just Group is starting the wholly-owned HUB Pension Solutions to provide support services for trustees, scheme sponsors and appointed advisers. The launch of the new services comes two months after the FCA’s policy statement on defined benefit transfers […]

Tablet-Technology-Computer-Business-700x450.jpg

Old Mutual Wealth to charge £150 for TVAS reports

Old Mutual Wealth has launched a new transfer value analysis service after suspending its old service in March. Old Mutual Wealth stopped all transfer value analysis report services after the FCA said such offerings could act as inducements in it’s policy paper on defined benefit transfers. Standard Life, Prudential, LV= and Scottish Widows also suspended […]

Tablet-Technology-Computer-Business-700x450.jpg

Selectapension confirms it will not reopen DB transfer bureau

Provider Selectapension has no plans to reopen its bureau that executed defined benefit advice, Money Marketing can confirm. In June 2017 Selectapension’s advice partner CFPML was visited by the FCA for an audit, which resulted in the firm deciding to voluntarily suspend cases while it made changes to processes and cleared outstanding backlog. At the time, Selectapension said […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com