Arlo Group, the Torquay-based financial planner, has acquired Purely Pensions, subject to FCA approval. The purchase marks Arlo Group’s entrance into the defined benefit market.
Purely Pensions, which deals in transfer value analysis report writing and other defined benefit services, will remain independently managed.
International managing director at Arlo, Jonathan Hives, commented: “We have invested into a company that has permissions to do DB transfers. This company has the Pension Transfer Gold Standard and it is absolutely critical that you take correct advice.
“We can offer report writing and anticipate other advisory firms will come to us and ask if we can do their reports. There are only so many companies able to do this and we have to be very careful with the reports we write.
“We have got UK and international and cross border expertise. We have additionally got our own in-house tax advisory arm ATC and can facilitate DB transfers now.”
Arlo Group has entered the market at a potentially challenging point. Forty percent of IFAs dealing with defined benefits have increased their fees since 2018, a reflection of rising regulatory costs. The industry has been subject to scrutiny since the High Court proceedings against a DB transfer in February.
Arlo Group managing director Finn Houlihan adds: “We have structured the business so there are no conflicts of interest. It is a very thorough process and we are confident about what we are bringing into the fold.
“We believe in tax-led financial advice and are getting queries from other IFAs that have their own tax practice. Now we are in a situation where we can give an internal referral to the new company that can do DB advice.”
To learn more about mitigating the risks of defined benefit transfers before you sell, sign up for our webinar.