O&M have just announced they are closing their DB transfer advice bureau (2nd May 2018), which is a service they provide for introducing IFA’s, according to a report in FT Adviser.
O&M Pension Advice is a trading name of Independent Pension Analysis Ltd.
The closure appears to be a troubling outcome created by the inability to secure “commercially acceptable” terms for their Professional Indemnity (PI) cover.
The significance of this is worrying as it seems that although O&M have done nothing wrong, and by all accounts have been providing a much-needed service to IFA’s unable to provide DB transfer advice to their clients themselves, yet still O&M must close their doors for no fault of their own.
There are few enough of us already that provide help for advisers who require DB transfer advice for their clients, and whilst Grove Pension Solutions is one of the longest established firms specialising in DB transfers, we also recognise the need for IFA’s to have choice in who they decide to partner up with.
The British Steel fiasco highlights the need for excellent quality, professional advice in this area and it would seem this is one of the contributing factors that is making underwriters jittery.
The thing is, since the introduction of pension freedom, the market has exploded, with more and more individuals needing professional help and advice; the problem is, fewer and fewer advisers are going to want the risk of giving this advice themselves but their clients are demanding it. That’s when a bureau service comes in.
With O&M being forced out of the market we can only hope the PI insurers can find a way forward.