National IFA Mattioli Woods has pulled out of the defined benefit transfer market following a review.
In a trading update, the wealth manager says that following a review it has decided to withdraw from the DB transfer market due to rising costs and increasing regulation.
The update says: “Following consideration of the increasing costs of professional indemnity insurance, additional regulatory controls and the resources we would have to dedicate to a relatively small part of our business we have decided to withdraw from this market and look to vary our permissions with the FCA accordingly.”
The firm says pension transfer advice to individuals with safeguarded benefits contributed approximately 1.6 per cent of direct revenues for the year.
The group does not expect financial performance to be affected by the decision.
The move comes a month after the firm stopped giving DB transfer advice and said was undertaking a review of the service.
Ahead of its final results for the year ending 31 May, the group says revenues grew by 15 per cent. The firm now has assets under management of £2.3bn.
Assets in its discretionary portfolio management service increased from £1.1bn to £1.3bn.
Chief Executive Ian Mattioli says acquisitions remain a “core part” of the firm’s growth strategy.
He says: “We continue to review a diverse pipeline of potential acquisition opportunities and believe further consolidation within our core markets remains likely.
“Our strong balance sheet gives us the flexibility to make further value-enhancing acquisitions.”