A note under the firm’s FCA register entry said it has agreed to “immediately cease to provide advice in relation to the transfer, or conversion, of safeguarded benefits under a pension scheme to flexible benefit”.
HDIFA also states on its website: “Please note – HDIFA is not currently taking on new cases while we revise our terms and processes. We will be updating all existing introducers once these changes have been completed. We apologise for the inconvenience caused.”
A specialist pensions firm, HDIFA, is an appointed representative of Financial Solutions Midhurst Limited (FSML), which on its website describes itself as a boutique investment consultancy serving high net worth clients in London, Europe, Asia and the Middle East.
FSML director Rich Fenech confirmed to International Adviser HDIFA is complying with the regulator and has suspended defined benefit (DB) to defined contribution (DC) pension transfers.
He added that the suspension relates to issues the FCA identified with how HDIFA works with advice firms that outsource business to it.
“The regulator has highlighted areas of an operational nature, specifically with how we deliver the advice process via introducing IFA firms, which needs to be adapted.”
“We understand the regulators observations and will work fully with them and our compliance and legal advisers to bring about the required changes in a timely manner whilst ensuring our clients continue to benefit from the highest of advisory standards,” he said in a statement.
FCA clampdown
HDIFA is one of an increasing number of firms ordered to suspend DB transfer advice following an FCA review.
In February, international advisory firm DeVere UK was told to “immediately cease” providing third party companies with transfer value analysis (TVAS) reports used in pension transfers. The company, which has offices across Europe, Dubai and Asia, is now the subject an FCA probe.
A month later, Holborn Assets, which also operates in Dubai, agreed to cease all pension transfer business, particularly that introduced by overseas advisers and again faces an FCA investigation.
On Thursday Selectapension, a UK firm which writes third party Qrops transfer reports following an FCA audit.
This latest sanction comes just weeks after the regulator announced it will change rules governing pension transfer advice and provide more protection for those considering giving up their DB pension.
Under the new system, the current transfer value analysis (TVAS) requirement will be replaced with a comparison showing the value of the benefits being given up. In addition, all advice provided on pension transfers will be seen by the regulator as a personal recommendation.
