Old Mutual Wealth has decided to halt all transfer value analysis report services as the FCA looks to crack down on unsuitable defined benefit transfers.
The decision follows Standard Life, which stopped offering free TVAS reports for IFAs yesterday after the FCA said they could act as inducements.
Standard Life and Old Mutual have both reformed their models just a matter of days after the regulator published its flagship policy paper on defined benefit transfers on Monday.
The paper noted many market participants had argued free TVAS software offered by providers presented a conflict, given it is an integral process to providing a recommendation and was an incentive to attract new business.
Under Mifid II, the rules on accepting non-monetary benefits from providers were tightened.
The FCA strengthened its own rules on inducement at the same time, and now considers that accepting free TVAS software would fall within this definition so should not be used.
An Old Mutual Wealth spokeswoman says: “We will be considering how we can offer this service in the future which meets FCA’s concerns about inducements while our current service is suspended until further notice.”
Old Mutual Wealth managing director of UK distribution Scott Goodsir says: “Following the FCA policy paper we are pausing our TVAS service as we review the detail.
“We recognise that there is a high demand for this service and so we are looking at how we can continue to support customers and advisers going forwards.
“We will complete all requests that have already been submitted. Any requests for re-quotes must be submitted by Friday 6 April.”