UK-based Tenet Group is withdrawing its defined benefit (DB) pension transfer advice permissions for advisers in its network who do not use them regularly.
This comes after the Financial Conduct Authority (FCA) published draft guidance on giving the watchdog additional powers to remove regulatory permissions if they are no longer being used by financial services firms.
From 1 October, only a small number of appointed representative firms that are active in the DB market will continue to be provided with a licence, while those that do not regularly write DB business will have their licence removed on 30 September.
A spokesperson from Tenet said: “Defined Benefit (DB) pensions transfers are complicated and specialist pieces of advice, and in line with best practice, we’re continuously reviewing our members’ permissions to ensure good customer outcomes.
“By removing members’ permissions which are not in regular use so they reside with member firms who are most active and experienced in this market, we can help to ensure the highest quality of advice for end clients.
“For those whose license is expiring, any of their customers wishing to still access DB transfer advice will be referred to our wholly owned financial advice business Tenet & You, and we’ll be providing all necessary support to them to complete any ‘in-flight’ cases.”
Industry change
This news comes after Quilter limited access to its DB pension transfer permissions to restricted financial planners in July 2020.
The firm told advisers in its network that they will not be allowed to do DB transfers under its FCA permissions.
Elsewhere, the FCA has looked to clampdown on the DB pension transfer market with the banning of contingent charging in a bid to address adviser conflicts of interest.
It has also recently told 60 firms with DB pension transfer permissions to consider carrying out past business reviews.
