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Novia Financial expands pension drawdown offering

First in a series of planned developments for the platform

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Platform group Novia Financial has launched pension decumulation and trade cycle propositions to meet adviser demands.

Financial advisers will now be able to access a benefit crystallisation event and a pension income functionality as part of a package of upgrades.

This includes a ‘drip feed drawdown’ for pensions which increases the options to give clients the opportunity to opt for regular benefit crystallisation events on a chosen day of the month.

The enhancement means that clients will be able to take their tax-free cash up to 25% and designate the remainder to drawdown. They can also choose to take the full or partial sum immediately as taxable income or leave it in their drawdown account.

Novia said the option has the benefit of leaving the tax-free lump sum to potentially grow in line with the rest of the uncrystallised portion of their Sipp.

Additionally, clients can choose the frequency of regular income payments such as monthly, quarterly or annually, meaning that advisers no longer need to manage the pension withdrawal process on an ad hoc basis rather give one instruction for regular crystallisation.

Trade cycles changes

The other upgrade made by the platform includes the introduction of faster trade cycles, where it has reduced the time out of market for clients’ investments.

Novia explained that, rather than all sales being settled before purchases are placed, it will now allow the placing of switches or new asset purchases as soon as contract notes are issued.

This means providing a quicker trading cycle as the faster the cycle completes, the sooner client investments are back in the market.

Barry Neilson, chief commercial officer at Novia Financial, said: “Advisers told us these two enhancements were important to them and their clients, because they help create greater efficiency and flexibility. We listened and we acted. These are just the first enhancements in a series of planned developments responding to adviser demand.

“We’re continually investing and evolving our technology structure to deliver the very best platform experience and our adoption of microservices will allow us to continue to introduce new, innovative features in the future.”

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