The Pension Advisers Support System is expanding its loan scheme giving IFAs financial support to cover compensation under the pension review to the review into the sale of pension top-up plans.
It is also relaunching its healthcheck service for IFAs to include a healthy options offering to meet IFAs' req-uirements at each stage of the free-standing additional voluntary contribution review process.
The £100m scheme, funded by life offices, will now offer IFAs loans to meet compensation payments resulting from the FSAVC review rather than just the pension review.
Pass estimates the cost of the loans to IFAs to cover the FSAVC review will be about 10 per cent of the £30m of the loans paid out so far to cover the pension review. It says it has enough funds to meet these requirements.
The loan scheme, set up in 1999, has loaned £30m to over 300 IFAs. Minimum unsecured loan is £1,000 and maximum is £250,000. Loans must be repaid within eight years at an interest rate of 2 per cent over base rate subject to a minimum rate of 6 per cent.
The healthcheck service provides IFAs with Pass consultants to ensure their review work meets regulatory requirements.
Healthy options lets IFAs choose from four services – Identify, Specify, Verify and Remedy. Identify is for IFAs who have not had their work checked, specify looks at specific problems, verify checks the IFA has successfully completed the review and remedy helps when regulatory visits uncover problems.