Support service provider SimplyBiz has signed a third new deal for defined benefit transfer advice work after its original partner pulled out of the marketplace.
In an email to members seen by Money Marketing, compliance director Gary Kershaw apologises for any inconvenience caused by Crowborough-based advice firm CFPML’s decision to exit the DB transfer marketplace.
CFPML was used by the Selectapension Bureau Service to execute DB transfer advice. SimplyBiz had a deal with Selectapension to offer pension transfer services, through which the SimplyBiz adviser received 40 per cent of the fee payable if a transfer goes ahead.
The FCA recently conducted an audit of CFPML, after which it has decided not to continue with DB transfers.
“The exact reasons behind [CFPML’s exit] are currently unclear, however, there are a small number of cases in the pipeline that will now not be processed,” Kershaw confirms in the letter.
Since news of CFPML situation broke, SimplyBiz has signed deals with two extra DB transfer partners: PensionHelp and Creative Wealth, which have “plenty of capacity to cope with any increased demand”, according to the email.
However, the support service provider has now also picked Kent-based Grove Pension Solution Limited as another partner for DB transfer work.
Kershaw writes: “Undoubtedly, one of the contributing factors to CPFML’s decision was the unprecedented demand it incurred following its launch two years ago, and I feel it is my duty to take every step possible to ensure this does not become an issue again in the future.”
Kershaw adds that the firm are DB transfer specialists and “not general financial advisers.”
“Since their establishment, they have provided advice to thousands of individuals considering a pension transfer, so I know Grove’s team has a significant amount of hands-on practical experience. Its extensive database covers all major UK pension schemes and, in fact, it has details of over 7,000 UK DB schemes, covering the significant majority of those in existence.”
In a statement Kershaw says: “Although the situation with CPFML is deeply disappointing, The SimplyBiz Group acted quickly and efficiently to find, complete due diligence upon and introduce alternative partners for our DB transfer service. Achieving the best result for the advisers who use our service and their clients is always the major aim of the group, and I am confident that we have a robust and comprehensive range of options in place.”