Aegon-owned national advice firm Origen has set aside £200,000 to cover the costs of an FCA skilled persons review into pension transfers.
Earlier this month, Money Marketing revealed Origen had been forced to stop writing enhanced transfer value business – where members are offered a transfer value in exchange for giving up their guaranteed benefits – by its parent due to concerns over the associated risks.
And it has now emerged the firm is the subject of an S166 review by the FCA following a wider thematic review, known as an S165, into ETV exercises by the regulator in 2014.
Origen’s annual report for the year ended 31 December 2014 says: “During the year, Origen participated in an industry wide S165 exercise covering large enhanced transfer value exercises.
“In January 2015, the FCA informed the company of its intentions to appoint a skilled person to review the fund recommendations made to a number of defined benefit scheme transferees.
“The scope of the work has yet to be finalised. A provision of just over £200k is included in the accounts to cover the cost of the exercise.”
The firms says it does not expect to have to pay any redress following the review.
During the year, the firm made total advice complaint provisions of £602,000, down from £747,000 in 2013.
Origen recorded a pre-tax loss of £1.13m, a significant improvement on the previous year’s loss of £5.6m.
Total income during the 12-month period rose 8.4 per cent, from £15.9m to £17.24m.