Newport-based Niche IFA has reopened its doors to new business, after being overwhelmed with pension transfer enquiries from British Steel Pension Scheme (BSPS) members last year.
Niche decided to close its doors to new pension transfer business on 10 October 2017. At its height, director Ray Adams (pictured) said the firm had received 10 calls a day from BSPS members.
On 16 February Niche was open to new business again. But in the four months it was closed, Adams revealed the firm turned away 320 transfer enquiries from BSPS members. He said the process of taking on defined benefit transfer clients was time intensive, with each requiring around 25 hours of work.
Those BSPS members who had obtained a cash equivalent transfer value were given a deadline of 26 January 2018 to decide whether to transfer out.
Adams said this timeframe had been the reason for the frenzy.
‘The problem was capacity. With the set deadline of 26 January, no advisers could physically cope with taking on that many clients.
‘If the trustees had said “this has got to happen over the next year”, we could have avoided the uproar we had. We could have just taken all clients at a steady pace.’
Adams joined us in our podcast studio earlier this year to discuss the British Steel saga in detail. Listen below, or visit our podcast hub to find out where else you can catch up with the latest episodes.