LV= has no plans to restart its suspended transfer value analysis service over concerns it could stray into giving financial advice.
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.”