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Warning – Misleading Transfer Values Distorting DB Advice

Recent press articles have raised concerns about transfer value and TVA reports.

At CTC Software we produced the very first transfer analysis reports in 1990 and we completely agree that the current regulatory format is no longer fit for purpose. This is particularly true for those at, or close to, retirement and need to a calculation based on the assumption of drawdown.

We also agree that TVAS is only part of the process. However it is an essential first stage in providing analysis which allows an adviser to tell their client whether the pension scheme is actually offering a Transfer Value which is good value or not; there are indeed some very poor Transfer Values being offered by some schemes. Once the relative value is understood then the next stage is to find out how the member wants to use their retirement savings and provide useful figures relating to their actual requirements.

Within the current boundaries of the regulation, CTC’s standard Transfer Analysis report does what Tideway advocates – keeping it short and understandable (and not cluttered with reams of data and graphs). We are also helping advisers with a streamlined process for producing Suitability reports and online tools for advisers to more easily explain the options to members.

We fervently hope that the FCA quickly provides its response to CP15/30 so as to provide a decent framework for proper advice to be given.