Pensions  

Pension Works: 'We’ve gone the other way with DB advice'

However he added: “But that's not getting away from the fact that the PI market is very, very difficult and occasionally you hear rumours that it's due for a change and there are people coming back into the market. I personally just can't see it, if anything has gone the other way, so certainly for the foreseeable future, I think it's going to remain as is. 

“It's going to be very difficult for smaller firms, and a lot of larger firms actually, to get PI cover to do DB, just because that's the nature of the market so it's all leading towards this consolidation of DB pension advice and outsourcing to companies like ours.”

Hot on compliance

King explained for his firm dealing with DB pension transfers meant being “hot on compliance”.

“We don't do any spot checks or anything like that. We compliance check every single case multiple times before it's issued to the client. Now, that can have its negatives because it takes time to do that, but it's so important that by the time that advice is issued to the client it is the correct advice. 

“By that we're not just looking after ourselves and presenting ourselves but protecting the clients and protecting the introducers as well because it's their relationship with the client.”

King said when the contingent charging ban was announced and came into play, the firm didn’t know what to expect. But it has since come to see the ban as a real positive.

“The whole abridged advice model has gone extremely well, and we do find that it filters out the vast majority, if not all the cases that would result in advice not to transfer are filtered out at the abridged advice stage, and that's great for the client because we don't charge for abridged.

“From our side, we’re then a lot more confident if it goes through that abridged stage, once it goes to full advice that it is going to result in a transfer.

"But around that, it's all about managing client expectations, and the expectations of our partner companies. Because of the nature of the structure that the regulators put in place, there is this chance that it's going to get through to full advice stage and be advised not to transfer, and we have to charge the client, so we have to make them really, really aware that that is the possibility.”