Defined Benefit  

SimplyBiz finds another new DB transfer partner

SimplyBiz finds another new DB transfer partner

SimplyBiz added a third defined benefit (DB) transfer partner, after firm CFP Management Limited (CFPML), one of its previous partners, exited the market.

The provider of compliance and business support to financial advisers has added Grove Pension Solutions to its list of partners, which already includes PensionHelp and Creative Wealth.

SimplyBiz has the goal of creating a panel of DB transfer firms.

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CFPML, the firm behind Selectapension Bureau Service, quit the DB transfer market earlier this month.

In a letter to clients, Gary Kershaw, group compliance director at SimplyBiz Group, said the exact reasons behind CFPML's decision “are currently unclear”.

However, there are a small number of Simplybiz cases in the pipeline with CFPML that will now not be processed.

Both PensionHelp and Creative Wealth have given assurances to SimplyBiz that they “have plenty of capacity to cope with any increased demand,” Mr Kershaw added.

Mr Kershaw argued following CFPML's sudden exit from the market Simplybiz “acted quickly and efficiently to find, complete due diligence upon and introduce alternative partners” to its DB transfer service.

He said: “Achieving the best result for the advisers who use our service and their clients is always the major aim of the group, and I am confident that we have a robust and comprehensive range of options in place.”

Regarding Grove Pension Solutions, Mr Kershaw said that the company has “provided advice to thousands of individuals considering a pension transfer."

He said: “I know Grove’s team has a significant amount of hands-on practical experience.

“Its extensive database covers all major UK pension schemes and, in fact, it has details of over 7,000 UK DB schemes, covering the significant majority of those in existence.”

Last month, the Financial Conduct Authority published figures on DB transfers that flagged widespread problems in the advice given to people seeking to transfer their pots.

Advice in more than half of the defined benefit transfers where the recommendation was to move the retirement pot was found by the FCA to be unsuitable or unclear.

Demand for pension transfers has soared as retirees seek to take advantage of pension freedoms and benefit from sky-high transfer values.

Figures from The Pensions Regulator found that up to 80,000 DB 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.