O&M Pension Advice is to cease activities as an Introductory Pension Transfer Advisory service.

The firm operates on an independent, introducer only, non-contingent charging model.

It will now work with outsourced compliance provider CATS to enter an “orderly rundown”, with operations due to end on 1 July.

Neither of the two parent firms, O&M Pension Solutions and Chartered Financial Planning firm Perceptive Planning, are affected by the closure.

Jamie Newell, director of O3 Insurance Solutions said: “It’s a real shame, almost the perfect storm.

“It’s just very unfortunate that with the current spotlight on DB Transfers, by both the FCA and PI Insurers, that obtaining commercially acceptable PI Insurance has proved fruitless.”

Phil Billingham, director of O&M Pension Advice, said: “It is with great disappointment that we have been forced into this position.

“When I took over the business in January, we had plans to become directly regulated with the FCA and move onto Chartered Status as soon as possible.

“Unfortunately a hardening of the PI market, in the wake of the British Steel fiasco together with unexpected difficulties with our arranged PI insurance, has forced our hand.

“Sourcing commercially acceptable PI cover at short notice has proved impossible.”

Jason Wykes, who ran the firm until January, said: “This is a particularly galling situation, as we have never had an advice complaint since O&M Pension Advice was formed in 2014.

“In addition, we had a full review of our service, advice and processes by the FCA in 2017 resulting in only minor process changes.”