Advisa Centa is proud to announce the launch of Transfer Analyser, a new addition to its suite of ground-breaking financial service solutions. Addressing government and regulatory concerns about possible bad practice, this solution leads the way in how risks associated with DB and DC pension schemes should be illustrated and compared, and further, fully complies with the recent rule changes introduced by the FSA.
Pension adviser Truestone has been in the vanguard of these developments. Tim Whiting, Corporate Development Director said “We are already using Advisa Centa’s Transfer Analyser solution which ensures that employees remain central to the advice process and fully informed on the risk/ reward trade-offs involved in Transfer Valuation Analysis (TVA) exercises. Members can see the key information and are made aware of all relevant financial considerations so decisions can be made on a consistent and informed basis.”
“Powered by eValue FE's market-leading financial planning and stochastic modelling engine, Advisa Centa’s’s solution facilitates an efficient advice process for this type of exercise and at the same time minimises potential risk exposure to both adviser and employer alike,” said Joanna Hall, Sales and Marketing Director, Advisa Centa.
Access to the Advisa Centa’s online Transfer Analyser enables members to consider the offer and options, taking into account their attitude to risk, and understand the pros and cons involved in undertaking a transfer. As recommended by the FSA, members can see asset specific forecasts and play around with a number of different variables to compare the income from the current DB pension they expect to receive with the pension they may achieve via the enhanced transfer.
Stochastic projections enable pension plan members considering transfer value offers to understand the risks they are taking on if they forgo their DB entitlements. It improves the communication of the issues involved in DB transfers, so that members can make an informed decision, consistent with their attitudes to risk. If the member is interested in considering the offer, full data can be released to an adviser for review together with increased functionality to enable the adviser to deliver a suitable recommendation. All reports are recorded to provide a complete compliance audit trail.
Key benefits of Advisa Centa's Transfer Analyser
• For pension plan members, the provision of a clear and comprehensive picture of the financial impact based on the options available combined with best practice communications, makes it is easy to understand and use. Post the transfer exercise, employees can also potentially have access to a retirement modeller on an on-going basis
• For trustees, the comfort and assurance that an objective comparison of risks and rewards is presented in a clear and graphically dynamic way that will allow different options to be considered together with the reassurance that the members will have ongoing access, if they want it, to a retirement modeller so that they can keep track of their pension
• For employers, the confidence that best practice and cost efficiency have been achieved throughout the processes as well as potential for significant improvements in their liability position
• For advisers, the improvement in efficiency since much of the administrative work associated with risk profiling and fact finding is undertaken by the member and that advice is only provided to those members who are actively considering a transfer, thereby creating a specifically designed and truly robust “industrialised” process
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