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Pension transfer specialist pulls advice service

O&M Pension Advice will stop offering its pension transfer advisory service from 1 July.

The firm, working with its outsourced compliance provider CATS, has now  begun the process of winding down the business and will stop accepting new cases as of today.

O&M will continue to produce transfer value analysis reports for advisers using its transfer bureau service, but will not be able to execute any advice.

The firm was not able to secure professional indemnity cover for its advisory services, according to director Phil Billingham, contributing to its closure.

He says: “When I took over the business in January, we had plans to become directly regulated with the FCA, and move onto Chartered Status as soon as possible.

Pru re-enters DB transfer advice market

“Unfortunately, a hardening of the professional indemnity market in the wake of the British Steel fiasco, together with unexpected difficulties with our arranged PI insurance, has forced our hand. Sourcing commercially acceptable PI cover at short notice has proved impossible.”

Former director Jason Wykes, who ran O&M until January, says: “This is a particularly galling situation, as we have never had an advice complaint since O&M Pension Advice was formed in 2014. In addition, we had a full review of our service, advice and processes by the FCA in 2017 resulting in only minor process changes.”

SimplyBiz signs another DB transfer deal after outsourced adviser exits

The move to close down the advice service mirrors Selectapension’s decision last year to continue providing TVAS reports for advisers, but not conduct any advice work itself.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. There will be a lot of advice firms taking this option and withdrawing, this is the tip of the iceberg. Many PI insurers are also not covering insistent clients and have increased premiums and accesses to eye watering amounts.

    The whole system is at odds, the FCA, FOS, TCS’s, MP’s, consumers, insurers and advisers. You cannot blame the insurers, they can see that an adviser is not likely to win under any circumstances.

    This is being so badly managed at every level, all trying to insure that they are not the ones holding any liability or can be blamed should any consumer complain.

    As for the reporting and media, I have yet to see any balance in reporting on these issue. Bad news sells, so they only report the bad outcomes. The positive outcomes vastly outweigh the poor, but that does not sell, does not further anyone’s career.

    Does anyone else feel like an animal with parasites and flees slowly but surely killing you. That no matter how hard you try, no matter what you do, you know they will not stop feeding until you are dead.

  2. Simon Webster 2nd May 2018 at 4:28 pm

    Some are quite prepared to risk a less well off later retirement in exchange for more holidays now and the chance to leave money to their kids. It is not for advisers, FCA or FOS to stop them taking a (properly informed) decision, the right to which was conferred on them by parliament. But until FOS says if advisers do this they will later have no case to answer advisers and insurers remain vulnerable to ambulance chasers. It is a farce.

  3. David Cathcart 2nd May 2018 at 8:43 pm

    We took the view a long time ago about DB transfers, that until the regulators understand how to the regulate them, the FOS understand how to review them and the PI insurers understand how to underwrite them, then we would stay well clear of them. It looks like that call was the correct one.

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