Mattioli Woods has stopped operating in the defined benefit (DB) transfer market blaming the increased cost of professional indemnity (PI) insurance costs and heightened regulatory scrutiny.
The wealth manager withdrew from the DB transfer advice market in June but, in a trading update released today, it said it had now decided to withdraw completely. It added the area was a small part of its business and its decision was not expected to affect its financial performance.
Chief executive Ian Mattioli said: “Following consideration of the increasing costs of PI, additional regulatory controls and the resources we would have to dedicate to a relatively small part of our business we have decided to withdraw from this market and look to vary our permissions with the FCA accordingly.”
It said pension transfer advice made up about 1.6% of the company’s direct revenue in the past year and “less to profit given the significant compliance costs associated with this activity”.
The business made the announcement in a trading update ahead of its final year results set to be released on 4 September.
Elsewhere the firm said it had garnered 1,300 new self-invested personal pension, small self-administered scheme and personal clients in the past year.
Total client assets under management, administration and advice increased by 10% to more than £8.7bn at year end.