DUE DILIGENCE FOR THE COLLECTIVE RETIREMENT ACCOUNT AND DEFINED BENEFIT TRANSFERS

Transcription

1 DUE DILIGENCE FOR THE COLLECTIVE RETIREMENT ACCOUNT AND DEFINED BENEFIT TRANSFERS For financial advisers only

2 COLLECTIVE RETIREMENT ACCOUNT AND DEFINED BENEFIT TRANSFERS 2

3 COLLECTIVE RETIREMENT ACCOUNT AND DEFINED BENEFIT TRANSFERS Contents Executive summary 4-5 Why choose Old Mutual Wealth? Introduction 6 Differentiating through service 7 Awards and independent recognition 8 Financial stability 9 A future-proof platform 10 CRA meeting your clients needs Everything you need to know about our TVA service The right skills and resources to help you 23 A comprehensive TVAS report 24 Overview of our TVA service 25 Supporting the best outcomes for your clients Investment solutions for retirement 26 Providing the right death benefits 27 Supporting holistic advice with LTA solutions 28 Flexible withdrawal options for your clients Additional features available with the CRA 13 Market-leading tools to support your advice process What next? Contact us 29 Clear charges with no hidden extras Unrivalled support for you and your clients Business development and online support Technical support Ongoing service support 22 Where we use the term platform in this document, this means Old Mutual Wealth s UK technology platform, which hosts collective investments and ISAs as well as bonds and pension products. 3

4 COLLECTIVE RETIREMENT ACCOUNT AND DEFINED BENEFIT TRANSFERS Executive summary Why choose Old Mutual Wealth? Old Mutual Wealth is part of Quilter, a leading provider of advice, investments and wealth management both in the UK and internationally. High quality service is a core part of our proposition, underpinned by a stable and easy to use platform that offers leading products, tools and trusts, to make managing a range of client needs simple. Our reputation as a market leader has been consistently recognised through prestigious industry awards for products and service. When it comes to choosing a platform, financial strength is important. Our UK investment platform has been consistently profitable for the last five years. This profitability makes it possible to invest in the platform to ensure that it continues to meet your and your clients needs, now and in the future. To retain our place at the forefront of the platform market, we have partnered with platform provider FNZ to future-proof our platform technology. How the Collective Retirement Account can meet your clients needs Our flagship platform product, the Collective Retirement Account (CRA), is a Gold Standard rated pension scheme provided by Old Mutual Wealth Life and Pensions Limited. The CRA offers some of the most comprehensive income solutions in the market. This includes automated monthly income options that let a client take money out of their pension using: only tax-free cash or + a combination of tax-free cash and taxable income These options are designed so that you can tailor each CRA to meet your clients needs, help continue to grow their pension, be more tax-efficient, and maximise their legacy if required. Our unbundled charging structure, combined with very competitive fund costs and no hidden extras, means your client can achieve great value on the total cost of ownership of an investment with us. Furthermore, we believe we have the most comprehensive set of adviser tools for you to ensure a great outcome for your clients, all available at no charge. 4

5 COLLECTIVE RETIREMENT ACCOUNT AND DEFINED BENEFIT TRANSFERS Executive summary Unrivalled support for you and your clients Whether it s delivered face-to-face, by telephone or online, we offer you first class support in the following areas: Business development support Everything you need to know about our TVA service Demand for advice around pension transfers is higher than it s ever been. We have the right skills and resources in place to help you and your clients determine whether to remain in their defined benefit pension scheme or not. We have been offering a TVA service to advisers for over 20 years. As a result, our TVA service has been refined over many years to offer greater accuracy, efficiency and support. The TVAS team currently consists of twelve members, with over 35 years combined TVAS experience, 60 years defined benefit pensions experience, and a range of qualifications between them. Via the O&M TVAS system, we offer a comprehensive TVA report. Supporting the best outcomes for your clients The Collective Retirement Account can be structured to meet different investment strategies to help you achieve great outcomes for your clients. We offer tailor-made strategies for accumulation and decumulation. Technical support Due to its flexibility, the CRA is able to provide the right death benefits, all without additional charge, for passing on pension savings in a way suited to each beneficiary. Behind the CRA sits a wealth of supporting collateral and tools for holistic advice planning. We can help you build a retirement plan and tackle complicated tax rules regarding the Annual Allowance and Lifetime Allowance. Ongoing service 5

6 Why choose Old Mutual Wealth? Introduction Old Mutual Wealth is part of Quilter, a leading provider of advice, investments and wealth management both in the UK and internationally. Quilter plc oversees billion in customer investments (as at 31 December 2017 under its previous name as the Old Mutual Wealth Group). We have an adviser and customer offering spanning: financial advice, investment platforms, multi-asset investment solutions, and discretionary fund management. Quilter is comprised of two segments: wealth platforms, and advice and wealth management. Wealth platforms includes: Old Mutual Wealth UK Platform Old Mutual International, including AAM Advisory in Singapore, and the Old Mutual Wealth Heritage life assurance business. Advice and wealth management encompasses the financial planning network: Intrinsic Old Mutual Wealth Private Client Advisers Discretionary fund management business Quilter Cheviot Multi-asset solutions delivered by Quilter Investors. The Old Mutual Wealth platform launched in its current form in 2007 and is core to the business in the UK. Through the platform, we distribute investment and savings products with access to a wide range of over 1,600 OEICs and unit trusts (available in multiple share classes). In recognition of our services, Old Mutual Wealth was presented with the Personal Pensions Award at the Gold Standard Awards in The Gold Standard Awards have been recognising higher standards in the financial services industry for 15 years and only companies that meet and surpass the appropriate measure achieve Gold Standard. Entrants are judged on a range of criteria grouped into five categories: financial strength, capability, service, fair value and trust. 6

7 Why choose Old Mutual Wealth? Differentiating through service Evidence from research agency Investment Trends shows that online services and human support are two of the most important factors when choosing a platform. At Old Mutual Wealth, high quality service is a core part of our proposition, underpinned by a stable and easy to use platform that offers leading products, tools and trusts to make managing a range of client needs simple. All of our platform services are fully supported by a service model that has been shaped by listening to advisers and their clients. For advisers, both field and desk-based technical support is available to help make the complex simple and accessible. Our Trusts and Technical Solutions Helpdesk provides support on technical matters with pensions, as well as trusts and taxation to support holistic wealth management. Our field-based pension specialists are focused on advice solutions through technical interpretation and by providing relevant and clear benefits for you. A dedicated team of platform specialists are on hand to provide face-to-face training and support to make sure you get the most out of our platform. For your clients, our customer service centre has been in the top 50 companies for customer service in the UK. In addition, the Bright Index, a company which benchmarks and measures customer service satisfaction along with key performance indicators across a number of industry sectors, has ranked Old Mutual Wealth: in the top 25% across all industries as outperforming our peer group (financial services) in both quality and efficiency. We pride ourselves on the fact that most of these awards were either voted for by an independent committee or based on adviser insight. 7

8 Why choose Old Mutual Wealth? Awards and independent recognition Our reputation as a market leader has been consistently recognised through prestigious industry awards for products and service. Since 1991, Old Mutual Wealth has won 34 Financial Adviser 5 Star Awards that s more than any other investment provider. We are proud to have won a range of awards in 2017 and 2018 from independent due diligence providers, industry commentators and market experts. These are accolades every provider wants to win. our recent awards platform rating adviser awards 2017 For the third year running the Old Mutual Wealth platform has been awarded a platinum rating. The award is centred on a study of over 50,000 charge comparisons run by advisers and takes into account price competitiveness, platform features and functionality, service quality and adviser confidence in the platform. Outstanding Achievement award Life and Pensions - 5 star Life and Pensions - Most Improved provider Investments - 5 star award Investments - Innovation award Platform service 2018 Gold Award gold standard awards Winner 2017 personal pensions Protection service 2018 Best Platform 2017 platform Award Best Pension Service 2017 moneyfacts awards 8

9 Why choose Old Mutual Wealth? Financial stability Following significant transformation activity over the past three years, Quilter plc s integrated strategy of owning distribution, an investment platform, discretionary fund management and asset management is going well, contributing to the strength of new flows into the business. Quilter s profitability makes it possible to invest in the Old Mutual Wealth platform, which enables it to continue to meet your and your clients needs, now and in the future. The platform has been consistently profitable for the last five years and delivered an Net Client Cash Flow of 4.5 billion in The financial strength of Quilter is considerable, ensuring the long term sustainability of the platform. All of its underlying businesses are financially strong and regulated, with significant safeguards in place for investors. Independent financial services research firm, AKG, has given the UK platform business and Old Mutual Wealth Life and Pensions Ltd a financial strength rating of B+ ( Very strong ). Fitch Ratings has given Old Mutual Wealth Life Assurance Limited (OMWLA) an insurer financial strength rating of A as at 23 November 2017 and Old Mutual Wealth Management Limited (now Quilter plc) a Long-Term Issuer Default Rating of A- as at 15 March Quilter s business model is built on providing investors access to a wide range of funds from third party fund managers, as well as Quilter s own multi-asset business. As a result, the business does not expose its capital to the risks associated with annuities and credit spreads, which is a very different model compared to the risks run by more traditional UK insurance companies. The regulated entities within Quilter are well capitalised. The Solvency II ratio for the Quilter plc companies is over 155% as at 31 December bn* QUILTER PLC AUM 51.5bn** OLD MUTUAL WEALTH platform AUM 209m* QUILTER Operating Profit B+ (Very strong) AKG RATING *as at 31 December 2017 **includes international assets of 1.27bn invested through the Collective Investment Account. 9

10 Why choose Old Mutual Wealth? A future-proof platform In a rapidly evolving financial advice industry, our focus is on doing what is best for our customers. To retain our place at the forefront of the platform market, we have partnered with platform provider FNZ to future-proof our platform technology. FNZ is a proven platform supplier and outsourcer with an existing, fully functioning system that supports significant scale on behalf of a number of the UK s major financial institutions. While our collaboration with FNZ will drive the future technology of our platform, we will retain our own unique user experience, support, pricing and other features. We continue to invest in the quality of our people and the customer service they provide, our adviser support, the tools and usability of our online portals and the variety of product wrappers and features, which we know are all important to advisers in choosing our platform. We expect an enhanced customer and adviser proposition supplied by FNZ to be operational for new business by late 2018/early CUTTING-EDGE PLATFORM TECHNOLOGY ENHANCED CUSTOMER AND ADVISER PROPOSITION OUTSTANDING SERVICE AND SUPPORT WITHIN A SUSTAINABLE OPERATING MODEL SERVICE AND SUPPORT FULLY RESEARCHED WITH ADVISERS, A PLATFORM DESIGNED FOR YOU AND YOUR CLIENTs TECHNOLOGY PRODUCTS & SERVICES 10

11 CRA meeting your clients needs Flexible withdrawal options for your clients The Collective Retirement Account (CRA) offers some of the most comprehensive withdrawal solutions in the market. This includes automated monthly income options that let a client take money out of their pension using; only tax-free cash or + a combination of tax-free cash and taxable income The CRA also offers a flexible withdrawal solution through small pots payments. By taking out small lump sums, it provides a useful way to make one-off withdrawals without triggering the Money Purchase Annual Allowance or the potential difficulties of PAYE emergency tax. These options are designed so that you can tailor each CRA to meet your clients needs, help continue to grow their pension, be more tax-efficient and maximise their legacy if required. Your clients have ten flexible ways of withdrawing money from the Collective Retirement Account. 1. FLEXI-ACCESS DRAWDOWN OPTIONS (FAD) 2. CAPPED DRAWDOWN 3. LUMP SUMS FROM UNCRYSTALLISED FUNDS THROUGH FAD 4. SMALL POTS (from age 55) Up to 30,000 can be taken as small lump sums from Collective Retirement Accounts which are uncrystallised. 25% of each payment will be tax-free with the balance will be taxed at the basic rate of income tax. A small pots payment can also be made from a fully crystallised account with a value of 10,000 or less, in which case the payment will be fully taxed at basic rate. Any higher or additional rate tax will be collected via the member s annual tax return. CLIENTS WHO CAN USE SMALL POTS: Anyone over 55 Anyone who does not have Enhanced Protection or Fixed Protection 12, 14 or 16 (or who wants to register for FP16) Those without protected tax-free cash/early retirement age Anyone with uncrystallised funds remaining Anyone with an available Lifetime Allowance 11

12 CRA meeting your clients needs Flexible withdrawal options for your clients THREE TAX EFFICIENT* REGULAR INCOME OPTIONS Through the CRA, automated monthly crystallisations can provide a regular monthly income. This facility can be set up alongside existing flexi-access income withdrawals. The three options are: 5. Monthly payment is all tax-free We pay 25% of the amount crystallised as a tax-free lump sum. The residual crystallised amount is moved to the crystallised drawdown pot for future taxable income withdrawals; OR 6. Monthly payment is a mix of tax-free and specified taxable amounts We pay 25% of the amount crystallised as a tax-free lump sum and a specified part of the residual crystallised amount as taxable income. The balance will be moved to the crystallised drawdown pot for future taxable income withdrawals; OR 7. Monthly payment is 25/75% mix of tax-free and residual taxable amounts We pay 25% of the amount crystallised as a tax-free lump sum and the residual crystallised amount as taxable income. 8. FULL ENCASHMENT 9. OPEN MARKET OPTION 10. LEGACY PLANNING DEATH BENEFIT OPTIONS (See table below) Beneficiary flexi-access drawdown Nominee flexi-access drawdown Successor flexi-access drawdown Lump sum payment on death A separate account is established in the beneficiary s name, with no minimum age restriction. Payable to any individual, registered charity, or trustees of a trust at no charge. The value can be split between multiple beneficiaries. *The tax treatment and efficiency of these options will depend on the individual circumstances of each client. Tax rules and their application may change in the future. 12

13 CRA meeting your clients needs Additional features available with the CRA In addition to providing the right level of income to your clients, here are some additional features available at no extra cost that can support you in providing better outcomes for your clients. Prefunding for all switches, investments and tax relief on pensions we ensure your clients money is invested for the maximum possible time by pre-funding switches, investments and regular contributions. Pre-funded tax relief also means your clients can get up to an extra 45 days of potential growth compared to firms which don t prefund. Unlimited switches with no administration charge and investment management features including bulk switching, phased investment and auto-rebalancing to make servicing your clients accounts easy. Investment solutions to meet your clients needs whether you re looking for freedom of choice or expert guidance, cost efficiency or flexibility, we offer fund or managed solutions that help you deliver returns in line with clients expectations and risk appetites. Choose how income, fees and product charges are taken you can choose from a range of deduction preferences depending on how the CRA is set up. For example, you may wish to select fund specific encashment for a fully crystallised CRA to give you and your client greater control. The ability to invest in cash funds with no minimum limit applied. Efficient and easy straight-through online processing applications and transactions can be submitted in minutes and any accompanying paperwork can be sent directly to our processing teams electronically using our unique PROMPT tool saving you and your business time. Client-friendly documentation our literature and statements are focused on helping your clients to understand their pensions. They also have the option to opt-out of paper statements and receive documents online instead, by registering for our online Customer Centre. Full online audit trail transactions and client documents are available at any time, with management information (MI) available to you through the data download option. 13

14 CRA meeting your clients needs Maket-leading tools to support your advice process We aim to be a true partner to financial advisers and are continually developing an extensive range of tools to make your life easier and help you give great advice to your clients. We believe we have the most comprehensive set of tools in the market, all available at no charge. Here are a few that may be useful when dealing with a defined benefit transfer. Retirement Income Explorer tool forecasts how your client s savings could sustain them in retirement using stochastic modelling. Capped drawdown maximum income calculator helps calculate the maximum income available under capped drawdown, including adding additional designations to existing drawdown funds. Can also identify the amount to crystallise to provide a specific level of income. Tapered annual allowance calculator used to calculate the amount a client can contribute to their pension this tax year. It takes into account adjusted income, threshold income and any carry forward allowances available. Inheritance tax calculator calculates a client s potential IHT liability. It also includes information on gifts, exemptions and suitable trusts. Scheme specific tax-free cash calculator Helps determine a member s tax-free cash entitlement where they had tax-free cash rights greater than 25% as at 5 April

15 CRA meeting your clients needs Maket-leading tools to support your advice process UScan investment analysis tool use this tool to analyse individual funds, the assets in a client s accounts, or model portfolios using historic performance. Demonstrate the value of your advice by including or excluding fund switch history on an account. A white-labelled client report is available. Portfolio planning tools with optional use of our optimised asset allocation models (devised with Willis Towers Watson). For a full list of tools and user guides that can support you in giving great advice to your clients, please see the following link to our website. adviser/tools Risk assessment and discussion tool and mobile application. Tax-efficient withdrawal tool demonstrates the benefits of combining bonds and collectives to create tax-efficient withdrawals. The personalised funds list (on the platform) allows creation of a funds list specific to a client s portfolio to be presented alongside Key Features Documents and illustrations. 15

16 CRA meeting your clients needs clear Charges with no hidden extras Our unbundled charging structure, combined with very competitive fund costs and no hidden extras, means your client can achieve great value on the total cost of ownership of their investment. OLD MUTUAL WEALTH S CHARGE The CRA has a charging structure and fund range that is consistent with other tax wrappers on the platform. The CRA charging structure is therefore easy to understand since it removes any pricing bias between tax wrappers. It also means that the performance of funds held within the CRA (and all other tax wrappers) directly matches the performance of the underlying funds. One simple, tiered Old Mutual Wealth charge across all wrappers, with a rate that reduces as investments* increase No wrapper charge No transaction fees including switches, drawdown and pre-funding of tax relief The best fund deals in the market* Client funds can be linked for spouses or civil partners to benefit from a lower combined charge. We can also link client records in the following scenarios: CLIENT-LINKING Trusts where the client or the client s spouse/civil partner is the settlor of the trust (including cases where he/she is investing for children/grandchildren). SIPP investing in the Collective Investment Account (CIA) where the client or the client s spouse/civil partner is the SIPP member. CIA held in an offshore bond where the client and/or the client s spouse/civil partner are the bond holders or settlors of bonds held in trust. 16 *AdviserAsset Analytics report, March 2018

17 CRA meeting your clients needs clear Charges with no hidden extras A totally transparent charging structure, with an effective charge that reduces as your clients' investments* grow. Client Holdings Percentage Charge First 25, % Next 25,000 to 99, % Next 100,000 to 499, % Next 500,000to 999, % 1m % * Applies to investments held on the Old Mutual Wealth platform only: Collective Retirement Account Collective Investment Bond Collective Investment Account Individual Savings Account Client s total assets Effective charge 50, % 100, % 150, % 250, % 500, % 750, % 1,000, % The Old Mutual Wealth Product/Service Charge is taken from the account by unit deduction.1/12th of the charge is taken monthly on the charge deduction date. 17

18 Unrivalled support for you and your clients Business development and online support Wealth Management Consultants We are committed to developing a strong relationship with you. We have a team of more than 40 field-based business consultants operating throughout the UK, and a team of 20 head-office based consultants in our Adviser Sales Centre. They deliver a high quality business consultancy service to advisers, and are responsible for articulating our proposition. They are focused on helping you identify opportunities within your business and converting opportunities into positive outcomes for your clients. Defined benefit transfer support Your consultant can provide you with access to comprehensive support to help you determine whether your clients should transfer their defined benefit pensions to our Collective Retirement Account. All our support has been developed with a structure and process that is aligned with FCA guidance. We will: help you collate the right information help you meet your deadlines provide you with a dedicated team to produce the TVAS report for you. Please see pages for full details help you create an accurate record of the data gathered and the analysis help you mitigate any tax charges. 18

19 Unrivalled support for you and your clients Business development and online support Platform specialists Contact to register for Tip of the Week and/ or to request our webinar schedule. Our team of regional and head office-based platform specialists provide you with face-to-face and telephone support and training on how to make the most of our online services and financial planning tools, and how to seamlessly integrate them into your financial planning processes. They run webinars about specific aspects of our online services on a weekly basis, as well as Tip of the Week s. Sales support centre We are committed to developing a strong relationship with you. To help sustain this relationship, our telephone support teams are focused on supporting your business through all stages of the investment process from pre-sale support through to policy servicing and maintenance. Our dedicated, centralised teams can help with the quote and application process, as well as dealing with literature and product queries. 19

20 Unrivalled support for you and your clients Technical support We provide unrivalled support for you and your clients. Here s how we do this through our technical support. Trusts and technical solutions helpdesk We have a dedicated technical team in our head office in Southampton, consisting of six pension specialists and six life specialists. They give advice and support for large cases and technical matters on pensions, trusts and taxation in relation to our products. They are available from 9am to 5pm to provide you with technical support via telephone or technicalsolutionspensions@omwealth.com Specialist sales teams for pensions, investments, offshore and protection Our expanding specialist sales team is focused on advice solutions through technical interpretation and by providing relevant and clear benefits for you and your clients. Our team of 20 specialists offers an extensive portfolio of support from a practical workshop approach to learning through case studies and questions. The team can work with your firm to enhance your advice proposition, help you improve and broaden the possible outcomes for your clients, and make the complex simple. They also run seminars on topical advice opportunities and workshops with relevant and clear ideas for advisers using a practical and participative approach with workbooks, exercises, questions and tests. This can be used to evidence your learning for continuing professional development (CPD) and FCA audit. Regional seminars and workshops Throughout the year, we run adviser seminars across the UK. These take the form of regional business updates, fund manager presentations and masterclasses from our experts. We also provide a huge amount of support in helping advisers prepare for their key exams. Our team of specialist sales teams run workshops throughout the UK helping thousands of advisers pass their professional qualifications. Speak to your Old Mutual Wealth consultant to find out more. 20

21 Unrivalled support for you and your clients Technical support Defined benefit transfer training with the Chartered Insurance Institute (CII) One example of the seminars and workshops we offer are training events run in conjunction with the CII covering the best practice steps for a robust defined benefit to defined contribution transfer process. You can watch the CII videos that were presented at the latest series of events through our Defined Benefit Transfers webpage: These events were aimed at Pension Transfer Specialists to ensure they have the best possible knowledge and experience to feel confident and secure in the advice they are giving, and to help manage the risks. Close to 900 Pension Transfer Specialists attended and 92.4% rated them as either very useful or extremely useful webinars Please see the below link to our webinar programme for recordings and future sessions. online-education Further material is being developed for 2018 as part of our commitment to support Pension Transfer Specialists to provide robust defined benefit transfer advice. Webinars We run regular webinar sessions on a wide range of topics. These are recorded and available for you to watch at any time, including our series Understanding defined benefit schemes and transfers, which is focused on helping you with defined benefit transfers and advice. Transfer VALUE analysis service Our experts help to save time and give you peace of mind should you wish to transfer a client s defined benefit pension into the CRA. For more information, please see pages 23, 24 & 25. Informer and Knowledge Direct Written by our technical team, the Informer and Knowledge Direct areas of our website contain articles, information and support on all areas of UK financial planning. 21

22 Unrivalled support for you and your clients Ongoing service support An award-winning, in-house customer contact centre is on hand to assist you and your clients with any new or existing business queries. Available 8am - 7pm Monday to Friday Freephone ask@omwealth.com award-winning Customer Contact Centre Our Customer Contact Centre is available from 8am to 7pm Monday to Friday on freephone , to answer any queries financial advisers and their clients may have for new or existing business. There is also an address for financial advisers and clients to use; ask@omwealth.com. adviser website Our adviser website has information on our products and investment choices, and a resource library which contains the latest literature and funds lists, user guides for our online services, case studies, and tools; such as our Risk Discussion and Total Cost of Ownership tools. A dedicated transfer chaser team We understand the importance of transfer deadlines and the need for a hassle-free move. That s why we have a team dedicated to chasing your transfers and helping them stay on track. On average, they chase around 300 transfers every day, with the first chase eight days after the transfer request has been made. The team will also identify any potential missing information early, so this can be rectified with the scheme and not delay the transfer. 22

23 Everything you need to know about our TVA service The right skills and resources to help you Arranging a transfer value analysis service (TVAS) report can be very complex and time-sensitive, so a thorough understanding of final salary schemes is required before embarking down this route. Having the right experts on-hand to help can give you peace of mind and more time to concentrate on other important areas. We have been offering TVA services to financial advisers for over 20 years. The TVAS team currently consists of 12 members, with over 40 years combined TVAS experience, 60 years defined benefit pensions experience and a range of qualifications between them. This depth of experience adds much needed value to the TVA service. They use their experience and familiarity with defined benefit schemes to: help you understand what's needed to produce a report by providing a checklist for you to use 600 tvas On average, the team receives approximately 600 TVAS requests every month. interpret and vet the data to ensure that accurate information is input so you and your client get a reliable, high-quality TVAS report help you to liaise with the defined benefit scheme to obtain accurate information help with general guidance and any TVAS queries you may have provide a quality TVAS report as quickly as possible targeted with a 10 day turnaround The cost of each TVAS report Each report costs 150 plus VAT and we will invoice adviser firms on a monthly basis in arrears. When there is more than one DB scheme for an individual client (for multiple schemes or breaks in service) then each of these will require a separate TVAS report and will be charged separately. The cost will be invoiced on a monthly basis in arrears, payable within 14 days. Within 180 days of the issue date of the original TVAS report requotes will be included at no extra cost. After 180 days any requotes will be treated as a new request and charged for accordingly. 23

24 Everything you need to know about our TVA service A COMPREHENSIVE TVAS report Our TVAS reports are produced using the O&M Transvas Profiler software, provided by O&M Pension Solutions. O&M have been providing systems and services for occupational pension transfers for over 20 years. Transvas Profiler is an innovative programme widely used throughout the pensions industry as a means of accurately assessing and comparing final salary pension benefits. The system produces a comprehensive, compliant report comparing the member s defined benefit (final salary) pension scheme benefits to a personal pension. The Old Mutual Wealth TVAS report is based on a comparison with our Collective Retirement Account (CRA) and is not a whole of market service. As per FCA COBS 19.1, it will only be compliant if your client s pension is transferred to the Old Mutual Wealth CRA. Critical yield Shows the critical yield required to match the scheme benefits at normal retirement and early retirement, if required. Full pension and tax-free cash and reduced pension options are included. Retirement benefit projections Cash flow modelling Pension protection fund (PPF) Comparison of death benefits Personalised fund selection Compares the projected pension benefits from the existing scheme against an annuity purchase, using personal pension projection assumptions. Includes examples of cash flow modelling assuming the same amount of income and tax-free cash is taken as the existing scheme. It covers average life expectancy and demonstrates the impact on the critical yield both before and after this age and the effect on the critical yield when a spouse's pension becomes payable. A detailed analysis of what your client may receive, should their scheme fall to the administration of the PPF. This includes details of the PPF long service cap. A comparison of death benefits, both before and after retirement. You can select multiple investment funds across different sectors enabling you to meet the FCA s expectations around fund specific growth rates, thereby reflecting your client s specific investment model on transfer. 24

25 Everything you need to know about our TVA service Overview of our TVA service We understand that the clock is ticking once a Cash Equivalent Transfer Value (CETV) has been issued, so it s important to get off to a flying start. Our TVAS team has refined its processes to ensure every stage works towards providing you with an accurate TVAS report as quickly as possible. Most reports are able to be completed within 10 working days. Our TVA service has been refined for accuracy, efficiency and support Use our checklist Our checklist helps you get the right information to us and avoids delays due to missing information. Submit via PROMPT for TVAS Our online submission tool, PROMPT, ensures essential information is captured and sent to our back office system. TVAS request received Basic, high-level checks are carried out to ensure the information supplied looks correct. We will contact you for any outstanding information. Fully reviewed to finalise information We will provide a client-specific response for any final information needed which you can pass to the scheme administrator. TVAS report sent to you securely via Unipass Ongoing support will also be available if you have any further queries. 25

26 Supporting the best outcomes for your clients Investment solutions for retirement To deliver the right level of income, it s crucial that the pension s underlying investments are managed effectively. The Collective Retirement Account can be structured to meet different investment strategies to help you achieve great outcomes for your clients. For clients still in accumulation, WealthSelect is our Managed Portfolio Service which provides a convenient and complete investment solution enabling you to fully outsource portfolio construction and management to our team of investment specialists. For people starting out on their decumulation journey, inflation, longevity risk and sequence of returns risk all need to be addressed. The Generation portfolios have been designed to meet the needs of a new generation of retirees, who desire a flexible and bespoke solution to tackle these risks. GENERATION: A RANGE OF THREE MULTI-ASSET FUNDS BUILT FOR RETIREMENT & FOCUSED ON CLIENT OUTCOMES Specifically designed for at-retirement clients to mitigate the risks during decumulation. Focus on capital preservation and short-term risk management. Total return focus, targeting CPI +3%, CPI +4% and CPI +5% all net of fund charges. LONGEVITY A SUSTAINABLE SOURCE OF INCOME INFLATION TARGETING CPI+ RETURNS SEQUENCE OF RETURNS MANAGING SHORT-TERM RISK Designed for clients wishing to take income. Capital-preservation at its core. Engineered to mitigate sequence of returns risk. CPI +3% AFTER FUND CHARGES CPI +4% AFTER FUND CHARGES CPI +5% AFTER FUND CHARGES GENERATION TARGET 3 GENERATION TARGET 4 GENERATION TARGET 5 26

27 Supporting the best outcomes for your clients Providing the right death benefits Since the new pension freedoms were introduced on 6 April 2015, the potential choices available to members of defined contribution pension arrangements as to how any remaining value of their pension savings can be passed onto beneficiaries has increased - provided the new choices are available in the scheme holding the savings. It s essential that any legacy planning considers the need for a nominee drawdown facility for beneficiaries and whether they may require the legacy they receive to continue to be invested. Not all money purchase arrangements will offer this facility as part of their product offering. Without it, the only choice is the payment of a lump sum which then forms part of the beneficiary s estate and may require investment outside of the pension system to deliver future growth and income in a less efficient way. The right death benefit options can provide: continued investment ready access to capital an additional pension savings vehicle without any impact on the beneficiary s ability to fund their own pension savings continued inheritance the tax-efficient use of savings. The Collective Retirement Account provides: nominee drawdown successor drawdown lump sum payment. Full range of death benefit options available in the CRA No additional charge for any option No minimum age of entry for any option Flexibility to suit each beneficiary 27

28 Supporting the best outcomes for your clients Supporting holistic advice with LTA solutions At a time when pension allowances are decreasing, offshore investments could deliver the growth potential and taxefficiency your clients need. An offshore bond could be suitable as an additional investment for your clients, especially if they are impacted by the Lifetime Allowance (currently 1 million for the 2017/2018 tax year). We offer an offshore bond called the Select Bond, which is specifically designed to be tax-efficient for UK resident investors, allowing them to take maximum advantage of potential offshore tax benefits. With an initial minimum lump sum premium of 20,000, the Select Bond is more accessible than many other offshore bonds, which typically require a higher level of investment. Our brochure 'Helping you grow your wealth with confidence' explains how the bond can provide flexibility and a secure offshore home for your clients investments, alongside growth opportunities and IHT planning solutions. View our select bond lifetime allowance case study here: 28

29 what next? Contact Us If you have any further questions on the topics covered in this document, please contact your consultant. Alternatively: call us on at More contact information is also available on our website: VISIT OUR RETIREMENT WEBPAGE Further information on our Collective Retirement Account, resources and tools can be found on our website: Visit our defined benefit transfers webpage Our dedicated defined benefit transfers webpage provides a range of support including: a defined benefit transfer process decision tree a ready-made fact-find letter to the existing scheme details on our TVA service webinars and CII training hints and tips. Click on the link below to visit our webpage: 29

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32 Thank you for considering Old Mutual Wealth. If you have any questions about the information provided in this brochure, please contact your consultant, or The value of any tax relief will depend on the investor s individual circumstances. Tax rates may change. Your clients investments may fall as well as rise in value and they may not get back what they put in. Please be aware that calls and electronic communications may be recorded for monitoring, regulatory and training purposes and records are available for at least five years. Old Mutual Wealth is the trading name of Old Mutual Wealth Limited which provides an Individual Savings Account (ISA) and Collective Investment Account (CIA) and Old Mutual Wealth Life & Pensions Limited which provides a Collective Retirement Account (CRA) and Collective Investment Bond (CIB). The WealthSelect Managed Portfolio Service is provided by Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited. Old Mutual Wealth Life Assurance Limited, Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited are registered in England & Wales under numbers , and respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. Old Mutual Wealth Life Assurance Limited and Old Mutual Wealth Life & Pensions Limited are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financial Services register numbers are and respectively. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority with register number VAT number for all above companies is SK18118/ /June 2018