On 26 March, the FCA issued update policy on DB pension transfers.
In the announcement, the regulator expressed concerns that Tvas reports provided by companies to advisers could act as an inducement, and took the position that they likely fell outside its new rules and guidance.
TVAS and the FCA
It also stated that Tvas will be replaced with an “appropriate pension transfer analysis” (Apta) of a client’s options alongside a prescribed transfer value comparator.
The changes to Tvas will come into effect on 1 October 2018.
The tougher stance on Tvas was made as the regulator looks to modify the rules and guidance on inducements for non-Mifid business to mirror more closely the Mifid II rules.
The FCA said in its statement: “This means that non-monetary benefits which were previously not included in the inducement rules are now included. We consider it is unlikely that providing or accepting free Tvas or Apta software would fall within the narrower definition and so should not be used.”
OMW responds
Scott Goodsir, managing director of UK distribution at OMW, said: “Following the FCA policy paper we are pausing our Tvas service as we review the detail.
“We recognise that there is a high demand for this service and so we are looking at how we can continue to support customers and advisers going forwards,” Goodsir said.
He said OMW will complete all requests that have already been submitted. “Any requests for re-quotes must be submitted by Friday 6 April.”
OMW’s suspension of Tvas followed Standard Life Aberdeen cutting its Tvas tool on 28 March for similar reasons.
A spokesperson for Standard Life said it would complete any pipeline requests and will produce any requests for re-quotes submitted by 5pm 6 April.
