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.
“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.”
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.