The Selectapension Bureau Service (SBS) provides report writing and advice services for pension transfers for financial advisers.
This includes writing transfer value analysis (TVAS) reports for those advising on qualifying recognised overseas pension schemes (Qrops).
The firm is one of the largest providers of TVAS reports for IFAs and completed 47,000 cases over the past tax year.
A note on the SBS website says: “Please be aware that due to unprecedented demand, we are unable to accept new pension transfer analysis cases for a temporary period. We are working hard to rectify the situation as quickly as possible and apologise for any inconvenience caused.”
FCA audit
A spokesperson for Selectapension said the firm took the decision to suspend new pension transfer requests following a recent FCA review of outsource advice partner CFPML.
“The regulator recommended making some changes to processes which we are currently implementing. Full permissions remain in place while CFPML are working with the regulator on their ongoing review
“We took the decision to suspend the SBS service for new pension transfer requests so the partner firm could deal with the outstanding backlog and to allow CFPML to update their processes.
“We apologise for any inconvenience caused at this time but are working hard to deal with all pipeline cases as soon as possible,” said the spokesperson.
Temporary suspension
UK compliance and business support provider SimplyBiz, which works with SBS, said the suspension is “temporary”.
“SBS recently had an FCA audit as part of the regulator’s thematic review of the marketplace, and I am pleased to say that both parties are satisfied with the outcome of this visit,” said Gary Kershaw, SimplyBiz’s group compliance in a statement.
“Whilst being a result of feedback from that meeting was not at the request of the regulator, and was a decision taken voluntarily by the SBS Board in order to implement the process changes from the FCA feedback as soon as possible.”
Pension transfer overhaul
The decision to temporarily close the service to new business comes amid a clampdown on pension transfer outsourcers as the UK’s Financial Conduct Authority (FCA) continues to review the market.
Last month, the regulator published proposals to overhaul 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.
Overseas pension transfer are also set to become more complicated to execute under new proposals, with expats required to consult two sets of advisers – a UK-based FCA-regulated adviser and one based in the country where the expat is living.
Firms ceasing business
In recent months, the City watchdog has ordered a number of firms to cease their pension transfer businesses including international advisory firms DeVere UK and Holborn Assets.
Both firms are now the subject of an FCA investigation as is UK IFA Strategic Wealth which has been issued with a Section 166 notice, involving a third party ‘skilled person’ review of the company.
Last month, Glasgow-headquartered Intelligent Pensions was also ordered to stop providing pension advice by the regulator.
