Selectapension’s return to the defined benefit transfer space is set to be delayed as an FCA restriction is placed on its outsourced advice partner.
While Selectapension, one of the biggest players in the market, has continued to provide transfer value analysis services, it was using two-director advice firm CFPML, which has office space across the road from the firm, to execute advice.
In July, after the FCA audited CFPML, the firm decided to voluntarily suspend cases while it made changes to processes and cleared outstanding backlog.
At the time, Selectapension said it was looking to resume new cases “at the earliest opportunity,” confirming in October that this was set to happen in 2018.
However, CFPML has now agreed a restriction on its business with the FCA to stop all pension transfer advice.
The FCA register entry for CFMPL reads: “With effect from 31 October 2017, the firm shall cease to provide advice in relation to the transfer, or conversion, of safeguarded benefits under a pension scheme to flexible benefits.”
Selectapension told the media in a statement that it had not ruled out re-entering the market eventually.
Managing director Andy McCabe says: “We regret the inconvenience this has caused to our mutual clients and wish CFPML every success with their future endeavours.
“We are reviewing our proposition covering defined benefit transfer advice services, however it is too early to comment further at this stage. Selectapension will continue to offer transfer value analysis reports”
Selectapension was used by 7,000 IFA firms, processing 43,570 transfer reports in 2016.