Demand for Selectapension’s defined benefit transfer value analysis (TVAS) tool has outstripped demand for its money purchase tool for the first time, according to the investment software firm.
Selectapension’s DB TVAS service recorded 93,855 users from April 2017 to March 2018, more than the 86,347 people who used its money purchase service in the same period, as advice firms look to meet increasing transfer requests since the government introduced pension freedoms in 2015.
It follows a spate of providers leaving the TVAS market since the Financial Conduct Authority placed them on the wrong side of its inducement rules, leading to LV=, Prudential, Standard Life and Old Mutual Wealth all exiting.
In March, the FCA recommended replacing TVAS with a requirement to undertake appropriate pensions transfer analysis (APTA), which according to Selectapension director Peter Bradshaw will further boost usage.
He said: “Since the pension freedoms were introduced three years ago, there is growing demand for online research and analysis. In February, we added income modelling to our DB and flexible access drawdown tools, to enable holistic planning based on all clients’ assets.”
Usage of DB TVAS grew from 24,762 between April 2015 at March 2016 to over 90,000 three years later. Money purchase usages has been consistent at just under 90,000 in the same three year period.
Bradshaw added that the FCA’s policy statement 18/6 “deferred addressing the more problematic areas like qualifications and advisers referring cases to specialist and contingent charging”.