Old Mutual Wealth (OMW) is to launch a transfer value analysis (TVA) service with a mid-market price-tag, having “paused” its free offering in the wake of the FCA’s concerns relating to inducements.
The service, which will be available from 14 May, will now cost £150 per report – plus VAT – which OMW said covered the cost of the technical expertise of the TVA service team, the software and the production of the report.
The service is double the price of Novia’s, which charges advisers £75 to use its TVA service tool, and £50 cheaper than Selectapension’s offering.
OMW “paused” its free TVA service in March after a policy statement from the FCA suggested such offerings could be considered an inducement if offered free of charge.
The firm said the service has been refined to ensure advisers can receive an accurate report as swiftly as possible. As part of this, report requests will be submitted through a new tool.
OMW managing director of UK distribution Scott Goodsir (pictured) said: “A final salary transfer is often the most important piece of advice a client will ever receive and having all the right information is crucial. Our new TVA service will help us support advisers and their clients as demand for this advice continues to surge.
“The accurate production of a TVAS report is a key element of the DB to DC pension transfer process and our 12-strong TVAS team are well-equipped to provide swift and accurate analysis.”
Inducement concerns
In March, the FCA released a policy statement concerning advice on defined benefit pension transfers.
The regulator said the rules and guidance had changed on inducements since publishing its consultation on pension transfer advice in June and, as such, free TVA services or appropriate pension transfer analysis offerings would now be considered an inducement.
Following the policy statement Standard Life, Prudential, LV= and Scottish Widows suspended their free TVA offerings.
Novia was the first to begin charging for its service. It said the additional charge was merely to cover administration costs and to solve the inducement concerns raised by the FCA.
Since the providers began pulling out of the market, Selectapension national accounts director Peter Bradshaw told Professional Adviser his firm had seen an increase in demand for its paid service. It costs £200 plus VAT per report, or advisers can pay a licensing fee where they receive access to a set of tools that will enable them to create their own reports.
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