Tideway Investment Partners has launched a final salary transfer service for advisers to help them deal with increased demand for defined benefit (DB) to defined contribution (DC) switches.
Demand for transfers out of DB pension schemes has increased following the introduction of pension freedom as the reforms apply only to DC savers.
However, the process is complicated and this prevents some advisers from conducting this type of business. It can raise suitability issues and requires specific regulatory permissions.
In addition, many advisers have concerns around the process being a compliance risk which may increase the cost of professional indemnity insurance cover.
The Tideway service aims to help advisers for whom transfers of this sort are not a core activity by allowing them to outsource the process.
It helps by offering a review of pensions at retirement encompassing deferred DB schemes as well as DC schemes. It also helps advisers capture DB assets without the need for further training. Finally, it helps advisers avoid the compliance risks that DB transfers can throw up, the firm said.
The Tideway’s Final Salary Transfer Service for Intermediaries website will be managed by financial services specialists, James Brooks and Peter Simes.
Tideway managing partner James Baxter said: “Initially our enquiries all came direct from deferred members. However, as time went on we experienced an increasing number of enquiries from other advisers and realised there was demand for a new transfer specialist firm willing to work on other advisers cases.”
“We can understand why many advisers would prefer, for a variety of reasons, to outsource this complex advice.”
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