Prudential and LV= have become the latest providers to stop their free transfer value analysis (TVAS) report service for advisers in the wake of regulatory concerns these could constitute an inducement.
The two providers have joined Standard Life and Old Mutual Wealth, which said it was “pausing” its service while it looked for a paid alternative, in stopping providing the reports.
A spokesperson from Prudential said: “With effect from Thursday 29 March Prudential is withdrawing the TVAS service to intermediated advisers.
“This follows the publication of the FCA policy statement 18/6 where it has made it clear that is neither acceptable for a provider to offer this service without charge or for an intermediated adviser to accept such a service.”
A spokersperson from LV= said: “Following the FCA’s policy statement this week, we are suspending our transfer analysis service for financial advisers with immediate effect. Any cases currently in the pipeline will be completed, including any re-quotes received by Friday 6 April.
“LV= is fully supportive of the regulator’s moves to increase consumer protection in the DB transfer market, as it’s absolutely vital that only those who would benefit from the pension freedoms transfer out, and not anyone who would be worse off as a result.
“We recognise there continues to be strong consumer demand in this space and we are looking at what support we can continue to offer advisers to help them in this area of pension planning.”
In March, the Financial Conduct Authority released a policy statement concerning advising on defined benefit pension transfers.
In it, the regulator said the rules and guidance had changed on inducements since publishing its consultation on pension transfer advice in June, and as such, TVAS or appropriate pension transfer analysis will now be considered an inducement.