Selectapension's SBS service for new pension transfer requests has stopped all defined benefit pension transfer business.
A note on its website states that the move was due to "unprecedented demand".
It read: “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.”
The firm provides report writing and financial advice services for pension transfer analyses.
In a statement the company revealed it had recently undergone a review by the regulator of itrs outsourcing advice partner, CFPML.
Following that the regulator recommended making some changes to processes which the company stated it is "currently implementing".
"Full permissions remain in place while CFPML are working with the regulator on their ongoing review," the statement read.
It added: "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.
The move follows that of Intelligent Pension, which in June revealed it will no longer carry out advice on transfers of defined benefit pension schemes following a discussion with the regulator.
Demand for pension transfers has soared as retirees seek to take advantage pension freedoms and benefit from sky-high transfer values.
Figures from The Pensions Regulator found that up to 80,000 defined-benefit pension transfers were made in the year ending 31 March while data from from Mercer, the professional services group, suggest £50bn has been taken out of company pension schemes over the last two years.
Advisers expect demand for defined benefit transfers to keep rising in the next 12 months, according to research by Old Mutual International.
However concern about the suitability of transfers has been mounting, leading the FCA to step in.
In June the regulator published new proposals on advice relating to pension transfers where consumers have safeguarded benefits.
The proposed changes include requiring transfer advice to be provided as a personal recommendation, and replacing the current transfer value analysis with a comparison to show the value of the benefits being given up.
The regulator also revealed it plans to update our guidance on assessing suitability when giving a personal recommendation to convert or transfer safeguarded benefits, so that advisers focus on whether a transaction is right for a particular individual.
Guidance on the role of a pension transfer specialist is also set to be issued.
