O&M Pension Solutions has upgraded its transfer value analysis software (TVAS) to include a transfer value comparator (TVC) in light of new Financial Conduct Authority requirements.
The report specialist is to switch from TVAS to TVC from 1 October this year, and its TVC report will be available to advisers immediately.
O&M will be charging for the service, with pension transfer analysis reports costing advisers around £355 and a rented service where they can produce a report themselves for £95 a month.
The move comes after the FCA published its final rules and guidance report on advising on pension transfers earlier this year.
The watchdog has said transfer reports would need to include a TVC to illustrate how much it would cost the client to obtain the same level of benefits they would get from the defined benefit if they were to transfer.
Jason Wykes, director at O&M, said: "We understand that our customers need to prepare for the new world, and we have been working tirelessly to ensure that our TVC report was made available as soon as possible.
"This involved discussions with the FCA on the finer points of implementing the TVC. The inclusion of the TVC has signalled a major change to the content of pension transfer analysis reports, and it was important to us to ensure that we did not release the new report until we were absolutely satisfied with the result."
The FCA has also said it was unlikely providing or accepting free software for transfer analysis would fall within the regulator’s inducement rules, which prompted a number of providers to either withdraw their service or begin charging for it.
Craig Stokes, head of pension transfer advice at Pension Advice Specialists Limited, said: "The market for free TVAS providers has as good as disappeared since the FCA highlighted concerns over inducements.
"With the dawn of the TVC around the corner, this leaves only a couple of options; you can either build a TVC system in-house, or use one of the specialist providers such as O&M or Selectapension, both of whom it seems are geared up for the introduction of the TVC, by adding it in to their reports ahead of the October deadline.
"These non-provider linked reports will satisfy the regulators requirements, but could come at a significant cost to the IFA. The free TVAS era is a thing of the past."
This year, Active Wealth went into voluntary liquidation after it was told to stop pension transfer activity and cease giving transfer advice due to its involvement in the British Steel Pension scandal.
Intelligent Pensions and County Capital Wealth Management have also been previously told by the FCA to stop transfer activity.
rosie.quigley@ft.com
