Not just a TVC!
You need more than just the Transfer Value Comparator (TVC) to satisfy the FCA requirements for an Appropriate Transfer Analysis (APTA).
It’s essential to use a Defined Benefit transfer tool which helps to provide the technical analysis to aid the completion of your APTA.
The below table highlights some of the key points from the Policy Statement 18/6 – Advising on Pension Transfers and how Selectapension provides these requirements;
|Policy Statement 18/6 requirements||How Selectapension satisfies requirements|
|Consider the impact of tax and access to state benefits, particularly where there would be a financial impact from crossing a tax threshold/band.||
|APTA must consider a reasonable period beyond average life expectancy, particularly where a longer period would better demonstrate the risk of the funds running out.||
|Guidance on considering the safety nets – the PPF and Financial Services Compensation Scheme (FSCS) in the UK – that cover both the current and receiving schemes in a balanced and objective way.||
|Consideration of Death Benefits on a fair basis i.e. Showing capitilised benefits as a lump sum for both ceding and receiving schemes.||
|Mandatory requirement of a TVC.||
|Adding explicit requirements on the charges to be included in an APTA (including the TVC). These will include relevant product, platform and adviser charges.||
|The role of the ceding and receiving scheme in meeting the income needs, in addition to any other means available to the client – effectively obtaining an understanding of the client’s potential cash flows.||
For further information
26th September 2018 Are you TVC ready? We are!
28th August 2018 A Refreshing Change of Name
24th August 2018 Selectapension links up with iO
25th June 2018 Selectapension first to launch TVC
13th April 2018 Selectapension Response to FCA Policy Statement PS18/6