Transfer specialist O&M Pension Advice is to cease advising clients after it encountered 'unexpected difficulties' with its arranged professional indemnity (PI) insurance.
The firm, which was an appointed representative (AR) of London-based Perceptive Planning, was unable to get PI cover because its insurer went into administration and it was unable to find an acceptable quote elsewhere.
The firm, a trading name of Independent Pension Analysis Limited, will cease giving advice on 1 July 2018. It specialised in offering transfer advice
Director Phil Billingham said: 'It is with great disappointment that we have been forced into this position. When I took over the business in January, we had plans to become directly regulated with the FCA, and move onto Chartered Status as soon as possible.
'Unfortunately, a hardening of the PI market in the wake of the British Steel fiasco, together with unexpected difficulties with our arranged PI insurance, has forced our hand. Sourcing commercially acceptable PI cover at short notice has proved impossible.'
The firm will now enter a period of orderly rundown.
Billingham added: 'While this will be difficult for everyone, especially our fabulous staff, we will be working hard to ensure that we give the best advice we can to as many of the clients we have been introduced to as possible. To that end, we will cease to accept new cases as of todays date.'
O&M Pension Advice was an AR of Tenet until being given notice in January. Billingham took the helm with a view to taking the firm directly authorised, but its PI insurer went into administration, and the firm was unable to find an acceptable quote elsewhere.
Jason Wykes, who ran the firm before Bilingham took over, said: 'This is a particularly galling situation, as we have never had an advice complaint since O&M Pension Advice was formed in 2014. In addition, we had a full review of our service, advice and processes by the FCA in 2017 resulting in only minor process changes.'