TVAS report checking

Jamie_Barnes

I've been wondering about what different firms do when they receive TVAS reports that have been prepared externally. Do you check through the report for inconsistencies or accept it at face value?

Advisers here have conflicting views; some think us going through the report is a waste of time as it is checked and checked again by the company producing the report and they are experts and actuaries. Others think we should try and pull it apart as much as we can so we know what we are talking about when advising the client. I'm in the latter camp but interested to know what others think!

I'd also be interested to hear from anyone who produces their own TVAS reports in house.

benjaminfabi

I'd be with you in the latter camp. The TVAS is a fundamental regulatory document underpinning specifically a DB transfer recommendation. Anyone who is happy to rely on this unchecked and give advice is playing a dangerous game. 

If they are paid for through an independent bureau service then the level of checks should be minimal. I'd say that if the in house resources capable of checking can do so competently, then it's possibly cheaper to rent the system and do the entire TVAS in house. It's a steep learning curve but software providers are very helpful in my experience. 

If they are free from a provider, they will need to be thoroughly checked. I would never be comfortable with the potential conflict in that situation. 

We produce TVAS in house using selectapension. In our office there are currently 2 CF30 PTS and two AF3 qualified in the paraplanner team. Every TVAS report is checked and no one who isn't qualified to AF3 level works on DB transfer cases. We regularly discuss cases once all the kyc and TVAS are prepared where it's not clear cut. We usually minute these discussions for the file if there are conflicting opinions in the team. The TVAS is clearly a big part of this and we have to have 100% confidence in it, including knowing where it falls short. 

Jamie_Barnes

Thanks @benjaminfabi , very helpful as always. We pay on a case by case basis to O&M at the moment, but I think the volume of business has increased to the point that we should probably adopt the rental approach you've mentioned. I'd never go down the free TVAS from provider route, but I know of those who have. It just screams conflict of interest to me. 

benjaminfabi

Well I know from having worked with them how good the guys at O&M are. I'm not saying that you shouldn't check it, but you're using people who I reckon are the best. I'd use their system if it wasn't about 5 times the price!