SimplyBiz has added its second defined benefit (DB) transfer advice partner since previous partner Selectapension suspended its services in June.
Manchester-based Pensionhelp has agreed to offer DB transfer advice to SimplyBiz members. It will join Creative Wealth in offering outsourced advice to members of the support services provider.
Simplybiz chief executive Matt Timmins (pictured) said an increased demand for DB transfers led the company to find another partner.
‘Demand was extremely strong and with Selectapension unable to take on new business over the past few weeks we have been focusing on finding replacement suppliers which we have seen with Creative Wealth and Pensionhelp. It will be another couple of months before we can assess what the demand is but indications at this moment in time is that demand continues to increase,’ he said.
At the end of June a note appeared on Selectapension’s website saying its DB transfer advice offering, Selectapension Bureau Services (SBS), was not accepting new business. This suspension followed a Financial Conduct Authority (FCA) review of its connected DB transfer outsource partner CFPML.
SBS was providing a DB transfer service for Simplybiz advisers which allows them to outsource their DB transfer advice – this service saw 2,000 transfers go ahead over the last 18 months.
Following the SBS suspension, Simplybiz signed up transfer specialist Creative Wealth to provide a DB transfer service.
Pensionhelp, founded in 2015, has nine G60 pension transfer specialists and provides a DB transfer advice service for introducing advisers. Following this the firm then hands the client back to the introducing adviser, a message from Simplybiz seen by New Model Adviser® said.
Pensionhelp charges 1.35% on the first £250,000 and allows the introducing adviser to add their own charge of up to 1.65%, meaning the total charge is capped at 3% (subject to a minimum £1,500).
This then decreases to 2% for £250,000 to £1 million and is at 1% for amounts over £1 million.
Timmins said the firm added another DB transfer partner because it wanted to offer its advisers more choice as Pensionhelp has a different charging structure to Creative Wealth.
‘There would be no point in bringing two companies to the fore who had the same charging structure. We are bringing choice to advisers and we have done our due diligence on both organisations, ultimately it is up to the firm who they choose,’ he said,
Timmins said Selectapension’s DB transfer advice service would also be available to SimplyBiz members when it ends its suspension.
Selectapension declined to comment.