Firms that take a long-term view and are committed will manage to be successful in the defined benefit transfer advice market, according to the guests on the latest episode of the FTAdviser Podcast.
Hundreds of firms have pulled out of advising in this market due to the City watchdog’s crackdown on unsuitable advice and soaring professional indemnity costs.
But Alistair Cunningham, financial planning director at Wingate Financial Planning, said a firm must show commitment in order to survive in this market.
Appearing on the FTAdviser podcast, Mr Cunningham said: “A firm that wants to remain in the market needs to be committed, put the effort in and must realise it is not something that you can just dabble in”
He also said that firms should have a good process in place so that all advisers and support staff are operating in the correct manner.
Cunningham added: “A firm that is committed to stay in the market will be heavily driven by the process they follow.
“This includes a tightening on the rules of triage and introducing abridged advice. I know too many firms were crossing over into advice where they called it triage that certainly made it more important that the people handling phone calls are aware of processes.”
Meanwhile, Dominic James Murray, independent financial adviser at Cameron James said firms should adopt a long-term approach.
He said that firms who carry out DB business alongside other aspects of planning for their clients “will not be looking to change their skin overnight or in a couple of years”.
James Murray added: “They may have been in a financial planning firm for a number of years and they intend to continue to do so.
“I think one of the issues which the FCA has had is with firms which pop up and then start signing off on DB transfers but then close down again after a short amount of time.”
To listen to the full podcast click play on the video above or listen on Apple Podcasts, Spotify, Stitcher or Acast.