Novia launches DB transfer analysis service

Novia launches DB transfer analysis service

Platform provider Novia Financial has launched a transfer value analysis system (TVAS) service to cater to the growing demand for defined benefit pension transfers.

The service values the users' pension benefits under DB scheme against those that can be achieved in a defined contribution scheme, such as a self-invested personal pension. 

The TVAS service, which is free for Novia platform users, was built by the in-house Novia team and has been "externally reviewed and validated by Dunstan Thomas". It is available to advisers now.

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A spokesperson for the firm said: "This new Novia TVAS service enables an adviser to meet this regulatory requirement as well as providing a useful reporting tool to help support their pension analysis." 

Shaun Allwright, commercial director at Novia, said take-up of the service to date had been "higher than we anticipated".

"Pensions freedom has highlighted the need for an overhaul of the pensions system and with the flexibility this provides (along with the record low gilt rates) could increase the level of enquiries advisers receive for pension transfers," he said.

Dunstan Thomas' Chris Read said: “With this TVAS service, Novia have a facility that advisers are going to find invaluable as a reporting tool to help in achieving best outcomes for their clients in retirement."

Novia is the latest in a long list of DC pension providers to offer a TVAS service, responding to what Prudential's Stan Hughes recently described as "staggering" demand

The practice has not been without controversy, however. Last week, the Financial Conduct Authority ordered international advice firm de Vere to stop providing TVAS reports to third parties.

A week earlier, the FCA issued new guidance on DB transfers, revealing many advisers were not meeting regulatory standards.

Susan Hill, a St Albans-based chartered financial planner, said she did not use TVAS reports offered by product providers.

"If you're an independent adviser, you need to use an independent provider like Selectapension or O&M," she said.