Defined BenefitAug 6 2021

Fintech launches 'signposting' service for DB transfer advice

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Fintech launches 'signposting' service for DB transfer advice
ByAmy Austin

Retirement guidance tool Guiide is launching an adviser signposting service for defined benefit transfers in a move to put a halt to scams in this area.

Guiide’s DB solution, which is due to launch next month, provides guidance to members to explain the advice process behind DB transfers, the risks involved and the regulator’s views of this market.

According to Kevin Hollister, founder of Guiide, the service aims to give members a feel for whether or not a DB transfer would be in their best interest without crossing the advice boundary. 

If, after this, the saver decides to pursue DB transfer advice then the service signposts them directly to vetted, suitably experienced, specialist advisers with abridged advice as a prerequisite.

For those who decide against a transfer the service will signpost them to a general retirement adviser, should they decide to seek advice on using the scheme benefits to provide a retirement income.

Further guidance and modelling tools are also signposted, should the individual wish to manage their own retirement planning, or are not yet able, or ready, to access their benefits.

All advisers on the panel are vetted and will be continually monitored by external compliance advisers and an independent governance committee has been created to ensure the advice received is high quality.

Professional pension trustee Andrew Warwick-Thompson is independent chair of the governance committee, with the firm looking to recruit two more members - one from an advice background and the other having a consumer champion background.

Hollister said: "After receiving a transfer quote, which in many cases will be a large amount, most members are directed to to find an adviser."

As they are left to navigate this path unaided, with little or no understanding, it is then that many fall victim to a scam, according to Hollister.

The site is not available directly to individuals who have requested a transfer but is available to trustees who will then signpost it to their members as an option with a login code if they want to use it.

In February, OpenMoney partnered with Guiide to help people make the best choices over their finances in retirement.

At the time, Anthony Morrow, chief executive and co-founder of OpenMoney, said: “At OpenMoney we believe regulated advice should be accessible to all, regardless of how much money you have. 

“At retirement planning is complex and by linking Guiide’s pension planning tools with our regulated advice, we hope to help more people take decisions that will make the most of their finances in retirement.”

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