In a statement issued by the company today following a recent FCA review it said: “Following the recent FCA review of our 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.
Asked why Selectapension had suspended its Selectapension Bureau Service, which handles DB transfers for advisers, the company said: “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.”
DB transfers have soared in number in recent months as transfer values have rocketed. A number of providers have been inundated with new business. The FCA is currently conducting a review of Transfer Value Analysis systems at a number of providers and is looking at the way the DB transfer market is working.
An estimated 80,000 transfers were carried out in the past 12 months but concerns have been raised recently by the FCA and a number of leading industry figures about incentives to advisers to carry out transfers and at the soaring prices being offered to buy out clients from existing DB schemes.
Selectapension decided to suspend its defined benefit pension transfer business after an FCA audit took place at the firm. The suspension affected the
Selectapension Bureau Service which provides report writing and advice services for pension transfer analysis cases submitted by advisers.
A message 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.”
Selectapension has said it believes the suspension will be temporary and it hopes to re-open to new cases within the next few months.
Selectapension is a significant player in the DB transfer analysis market. It completed nearly 50,000 cases for advisers in the 12 months to April 2017.