Sesame is stopping advisers using life office transfer value analysis service reports, saying there is a risk that they are not accurate enough.
The network giant wants members to use reports from TVAS provider O&M Systems instead of life office-generated reports because of its concerns over compliance.
Members will be able to use life offices for feasibility reports but independent reports will be needed to recommend a transfer. Sesame members will now have to pay for independent TVAS reports.
In its latest compliance bulletin, Sesame says the risk of utilising poor-quality reports is amplified by the complexity of the transactions and the continued regulatory interest in transfer business.
Legal & General and Scottish Widows have actively marketed TVAS services to the IFA sector but Standard Life this week said it is withdrawing its TVAS.
Sesame media relations manager Jared Aitken says: “The quality of TVAS reports varies between providers. Some have made improvements but we have looked at the market as a whole. We believe taking the independent analysis route will give a more consistent and balanced approach.”
Widows retirement planning and marketing manager Ann Flynn says its system already uses O&M technology. She says: “We pride ourselves on the quality of our reports and we have a specialist team who produce them. We will continue to offer this service.”
L&G head of retirement product development Andy Agar says: ” Our TVAS is meant to be a tool that supports IFAs and it is a very successful one. I am disappointed that Sesame feel the way they do.”
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