From an initial Defined Benefit Triage process to a fully integrated TVC & APTA, ensure your clients make informed decisions.
Developed alongside former FCA technical specialist Rory Percival, our TVC & APTA module can help you provide good quality advice.
The introduction of the FCA’s PS18/6 mandates are changing the Defined Benefit (DB) Pension Transfer environment.
In basic terms, TVC & APTA are new rules and guidance aimed at giving advisers a framework to better enable them to give good quality advice, enabling consumers to make rational, informed decisions.
Users of our TVC & APTA module will also gain access to a quick-start guide, detailing the process from start to finish, as well as an initial Defined Benefit Triage process.
The FCA’s Policy Statement 18/20 means triage is now a very important part of the DB pension transfer advice process. But what is DB triage? The purpose of triage is to offer generic and balanced information to potential clients on transferring out of safeguarded benefits, without stepping across the advice boundary.
To help, CashCalc has developed its very own triage service, which includes audio and visual materials for you to use ahead of any first meeting.
Our triage process:
The TVC is a mandatory comparison of the transfer value offered, with the cost of securing the same safeguarded DB income through the purchase of an annuity in a DC scheme, where the result of a recommendation would be the purchase of an equivalent annuity.
Our tool provides you with easy-to-read visuals, so you can best demonstrate to your client how the existing scheme and the alternatives, may or may not achieve their objectives.
Our TVC tool:
An effective APTA should help to demonstrate the suitability of your personal recommendation of why a transfer may not, or may, ultimately be in your client’s best interests.
This should be in consideration of a number of your client’s personal circumstances, such as their attitude to risk and tax implications, as well as making broader considerations of the compromises the client is making for a potential transfer.
Our APTA tool:
We’re committed to providing good value across our entire suite of tools. If you’re already a CashCalc customer, then you can add our TVC & APTA tools to your package including DB triage, for just £30 per-month + VAT.
Take a look at our pricing for more information
If you’re new to CashCalc, you can take out a 28-day free trial by registering for an account.
Already have an account? You can take out a trial in the Plans page.
You can view a pre-recorded demo in CashCalc TV.
To book a 1-to-1, group demo or to arrange an on-site visit, go to My Account.
For more information please visit our Support section
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We are introducing rules and guidance aimed at providing advisers with a framework which better enables them to give good quality advice so that consumers make better informed decisions
We are maintaining our guidance that an adviser should start from the assumption that a transfer will be unsuitable. This reflects the high proportion of unsuitable advice seen in supervisory work and need for further consideration of how transfer advice should be paid for. The existing guidance on the starting assumption does not, however, prevent an adviser from recommending a transfer where this can be demonstrated to be suitable for the consumer.
The new rules and guidance include:
- Personal recommendation: requiring all advice on pension transfers to be a personal recommendation.
- Role of the pension transfer specialist (PTS): clarifying the role of a PTS when checking advice.
- Analysis to support advice: replacing the current transfer value analysis (TVAS) requirement with the following: a requirement to undertake an 'appropriate pension transfer analysis' (APTA) of the client’s options; and a prescribed Transfer Value Comparator (TVC) indicating the value of the benefits being given up and the cost of purchasing the same income in a DC environment.
- Opt-outs: applying a consistent approach for pension opt-outs where there are potential safeguarded benefits.
Defined Benefit (DB) pensions, and other safeguarded benefits providing guaranteed pension income, give valuable benefits so most consumers will be best advised to keep them. But we recognise the pensions environment is changing, particularly since the introduction of the pension freedoms gave consumers more options to access their pension savings. As a result, there is increased demand for pension transfer advice. Given this, we wanted to ensure that those providing regulated financial advice fully consider the client’s circumstances and properly consider the various options available to them.
This policy statement will primarily be of interest to:
- firms advising on pension transfers
- those acting as pension transfer specialists
- pension providers
- those providing software for pension transfer advice
- consumer groups
The consultation may also be of interest to:
- employer sponsors of defined benefit pensions
- employee benefit consultants
- providers of qualifications
- providers of professional indemnity insurance
- other industry and professional bodies
Read the FCAs official page here