Standard Life has decided to cut free transfer value analysis reports for advisers after the FCA expressed concerns they could act as an inducement.
In a flagship policy paper on defined benefit transfers on Monday, the regulator noted many market participants had argued free TVAS software offered by providers presented a conflict, given it is an integral process to providing a recommendation and was an incentive to attract new business.
Under Mifid II, the rules on accepting non-monetary benefits from providers were tightened. The FCA strengthened its own rules on inducement at the same time, and now considers that accepting free TVAS software would fall within this definition so should not be used.
While Standard Life says it will complete the “small number” of pipeline cases currently underway, providers will have to pay for TVAS services from today onwards.
A Standard Life spokeswoman says: “The FCA’s policy paper on DB to defined contribution transfers makes it very clear there is a need for a change of approach with regards to the provision of TVAS services. In response to this, we have taken the decision to withdraw adviser access to our TVAS service with immediate effect.”
A survey of Money Marketing readers last year found an even split between those who thought free TVAS reports were an inducement and those who did not.