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Support for in-house TVAS grows after free services cancelled

Signing divorce formAround two-thirds of advisers are in favour of doing their own transfer value analysis reports in-house, according to a Money Marketing survey.

Less than 30 per cent said that advisers should not conduct their own reports, while 8 per cent remained unsure.

At least five firms including LV=, Pru, Standard Life, Old Mutual Wealth and Scottish Widows have stopped offering free transfer value analysis report services after the FCA said the reports could act as inducements.

In its flagship paper on defined benefit transfers the FCA noted many market participants argued free TVAS software offered by providers presented a conflict of interest because it was integral to the planning process and was an incentive to attract new business.

Novia has set a £75 charge for TVAS reports for advisers on the back of the rules, but some in the market have questioned whether charging nominal costs and running the reports as a loss leader should still constitute an inducement.

Other tools for IFAs may also come into the spotlight at rules on inducements tighten due to Mifid II.

For example, BNY Mellon and Hymans Robertson are soon to launch a drawdown tool for advisers, but a price has not been placed on this yet.

More than 140 readers responded to the Money Marketing survey.

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