FT Adviser (20/11/2018) – Pension transfer specialist Tideway is relaunching its defined benefit (DB) transfer service for advisers, after withdrawing the service from some advisers and wealth managers last year.

James Baxter, Tideway’s managing partner, told FTAdviser that the firm reviewed its service – originally launched in 2016 – last year, in light of the Financial Conduct Authority (FCA) guidance in January 2017 covering the scope of the advice a specialist firm needs to provide where two firms are involved.

At the time, the firm was carrying out the transfers, but the ongoing investment advice was given by the original adviser.

Tideway – which earlier this year faced allegations of factory gating – is now looking to attract new introducers with its revamped service. Mr Baxter said the business wants to help IFAs to have a chance in the pensions advice space.

According to a report by RBC Capital Markets, this market, worth £1trn, is currently dominated by big firms such as St James Place, Rathbones and Brewin Dolphin.

FTAdviser reported in July that advisers performing a high volume of DB pension transfers are having their level of PI insurance coverage reduced to £500,000, as insurers are wary of the risks involved in this type of business.

Previously, they would have the full limit of PI insurance cover without any restrictions, of £1.75m.

Tideway’s approach has always been to conduct the full advice process from start to finish, using its own fact-finding process, even if the original adviser has provided information in this area.

In October, the regulator announced that it would carry out more analysis on whether to ban contingent charging.

Alan Chan, director of chartered financial planners IFS Wealth & Pensions, said the fact that Tideway is returning to the DB transfer market shows that they have gone back to the drawing board with the FCA and hopefully have now created a more robust advice process.

He said: “This kind of specialist advice area has been a real bottleneck in financial services in recent years so it should give consumers greater choice and allow IFAs to make client referrals to different pension transfer firms.

“Professional indemnity insurance is a significant concern for IFAs as well as the compensation culture we are witnessing which means that many IFAs, including ourselves, have chosen not to transact in this area although we are fully qualified to do so.”

Full article link: https://www.ftadviser.com/your-industry/2018/11/20/tideway-relaunches-pension-transfer-service/