An outsourced final salary transfer partner of SimplyBiz has introduced a minimum threshold for its transfer cases of £400,000 as transfer demand ‘continues to rise’.
Support services provider SimplyBiz has a panel of three defined benefit (DB) transfer partners who its IFAs can outsource DB transfer advice to.
PensionHelp, one of the firms on the panel, has now decided to only proceed with DB transfers worth over £400,000 from 1 February.
In a message to IFAs, SimplyBiz compliance director Gary Kershaw said: ‘By way of reassurance, please note that this is only a temporary measure.'
A spokesman from PensionHelp said the change, which relates to all introducers to the firm, was a reflection of strong demand.
‘We routinely monitor our workload and capacity in order to maintain our service standards. We have increased the minimum case size to ensure that we can complete work for existing clients and this increase takes effect from 1 February 2018. We will continue to review our terms of engagement throughout the year,’ he said.
Kershaw added in the message to advisers this change comes at a time when transfer demand continues to increase.
‘As you know, client demand for advice on DB pension transfers continues to rise and, whether you choose to deliver advice in this area yourself or outsource to a specialist, it is more important than ever that you have a robust solution available,’ he said.
‘In order to help you ensure that you can respond to the needs of your clients in the DB transfer arena, the SimplyBiz Group has provided training and services to add additional support. In the past few months, we have bolstered our pensions technical helpdesk, run a series of DB transfer workshops and extended our range of specialist transfer partners.’
Kershaw added on a ‘positive note’ SimplyBiz’s other two DB transfer partners, Grove Pensions and Creative Wealth, ‘have plenty of capacity to take on additional cases’.
He added the support services provider is in discussions with a fourth firm and is hoping to make an announcement ‘within the coming weeks’.
Last year SimplyBiz’s first DB transfer partner CFP Management Limited (CFPML), the firm behind Selectapension Transfer Bureau, exited the transfer market following an agreement with the Financial Conduct Authority (FCA).
One adviser, who did not wish to be named, said the latest news from SimplyBiz shows ‘there is still a huge demand on DB transfers being passed to these outsourced services’.
SimplyBiz has been approached for comment.