DeVere UK has been agreed to “immediately cease” providing third party companies with transfer value analysis reports by the Financial Conduct Authority.
The international advice firm is also subject to a section 166 notice, which means an independent “skilled person” is currently reviewing the firm’s activities.
Section 166 of the Financial Services and Markets Act 2000 (FSMA) gave the regulator the power to require firms to provide reports by skilled persons as one of its regulatory tools. The tool may be used for diagnostic, monitoring or preventive purposes.
The FCA has said DeVere must “immediately cease to provide third party companies with transfer value analysis/DBAR reports or other similar report of information designed to assist third parties companies in transferring customers defined benefit pensions to an alternative arrangement”.
But the regulator has not provided a reason for this requirement being introduced.
The FCA has recently issued a warning about defined benefit transfers, which also mentioned overseas transfers.
The warning stated advisers should take into account the specific receiving scheme, including the likely expected returns of the assets and all the costs and charges, when deciding suitability.
A spokesman for DeVere said its UK branch, in complying with the new FCA requirements, worked with divisions within deVere in seeking to represent clients’ interests cross border but no advice or information was provided to any other third party company.
He said: “DeVere UK wrote directly to the FCA on this matter and this resulted in a meeting.
“The firm, recognising the FCA wanted to strengthen procedures, entered into a voluntary requirement to cease providing advice in this arena.
“We continue to work alongside the FCA’s appointed independent body through the Section 166.
“As one of the sectors leading providers of overseas pension transfers to international clients, we fully support and welcome this review.
“We are confident that there has been no detriment to clients, and there have been no client complaints. Working with the FCA, we have taken decisive steps to ensure our clients' best interests have been served.”
damian.fantato@ft.com
