Snapshot: Tackling ETV head-on for our clients
It’s all about risk control and focusing on the member

Did you know?
Oval has completed three major ETV exercises so far in 2010 with a fourth in development. That makes us one of the few UK financial advisory firms to understand the theory of this delicate technique as well as its practical application.

As you may have already read, Enhanced Transfer Value (ETV) is a hot topic and one where tPR has just intervened to highlight the need for absolute clarity and balance. The recession has hammered the value of many pension scheme assets and unsurprisingly, employers offering DB pension plans are looking for ways to de-risk. But in the ETV equation, from an Independent Financial Advisors perspective, it is the interests of the member that must be paramount - first, last and always.

Let’s take a look at our ETV experience this year. We can’t name the clients and confidentiality prevents us going into detail. But we can outline the scope of the ETV activities we’re involved in. It’s all about best practice and putting the member first.

You’ve heard the theory - here are the practicalities

Simply put, we know we are delivering best practice in this market. We have recently completed three significant ETV exercises for major employers in the consumer electronics, infrastructure and fund management sectors. We have delivered over 1,000 pieces of individual advice in a risk controlled, member-focused way.

Commitment to the member has been the cornerstone of our approach in each case. Constructive dialogue with the employer and trustees is naturally essential - but in line with tPR guidance and FSA principles around DB transfers, we take a firm line with conflicts of interest. We are also currently delivering a large ETV project for a clothing manufacturer covering around 1,100 members and this, we believe, further enhances our reputation as an ETV adviser of stature.

Commenting on Oval’s approach to the ETV advice market, Oval Pension Solutions’ Head of Client Servicing Chris Large says: “We believe our approach to this market is second to none. We provide streamlining and efficiency to administrative processes, but the integrity of our advice is never compromised and we treat each member as a private client.”

The Oval capability

William Johnson is Oval’s Head of Employee Benefits and is spearheading the firm’s expansion into ETV: “We are committed to this market - as our track record shows - and we fully support the regulatory drive to improve the standard of advice. Rightly, a conservative and risk-managed approach was always going to be the direction of travel for tPR and their philosophy exactly mirrors our own.

“Our proposition is not about volume or case size. It is about a premium advisory service focused on the best interest of the member. If the transfer is not viable, we will recommend against it – if that means a challenging outcome for the sponsoring employer, then so be it. The scheme member is our client in every ETV case.”

• Typically, Oval is delivering ETV advice to members in cases of up to 10,000 people – from smaller businesses right up into the corporate space.
• We don’t operate a production line that churns out advice letters; we offer a full advice service based on the individual.

Ours is a pragmatic approach. So if you are thinking about an ETV exercise for your scheme and want to align with an advisory firm that understands risk control and membership need, then come talk to Oval. We’re all you need to know.

Like to find out more about how Oval can help you explore and manage ETV exercises? Contact William Johnson on 0115 937 1325 or email at: william.johnson@theovalgroup.com.