Aegon is readying to pay compensation to advisers and investors that were impacted by problems following the Cofunds replatforming in May.
Speaking to Money Marketing today, Aegon UK chief executive Adrian Grace says compensation will be paid for a range of issues, including advisers having to do extra work as a result of the Cofunds migration and investors experiencing issues with trades.
Grace says: “What is really important to us is no customer or adviser will lose out as a result of challenges or issues they have had with Aegon. I will have a bill in the second half as we start to compensate consumers and advisers for any challenges they have faced with us as part of this retail migration.”
Aegon moved more than 400,000 Cofunds’ advisers clients to the new Aegon platform over the first weekend of May.
However, around 400 advised clients were locked out of their accounts and there were also problems with the transfer for advisers, with some reporting issues with logging in to the new system and having to wait a long time to speak with customer service staff.
Aegon wrote to advisers in June apologising for the problems they experienced after the replatforming.
In an update earlier this month, the company admitted there were still issues that have not been resolved.
In half-year results released today, Aegon says there were £3m of additional expenses related to the replatforming problems in June.
Grace says that cost relates to the 200 extra people brought in to help with customer service after investors were moved to the new platform.
Those additional people were a combination of existing Aegon staff being moved onto the replatforming project and staff from two outsourcing companies, Syntel and Stellar.
Grace says: “We have the advantage of being a very big business and when we have moments of crisis we can move people across the business, whether you employ outsourcers or third parties. So the costs associated with what we have taken in the first half of the year are to do with those costs of additional resources to support adviser calls and clear backlogs.”
Grace dismissed speculation Aegon was a potential suitor for the Alliance Trust Savings platform, which its parent company has signalled is up for sale.
He says: “Our focus at the moment is on dealing with the issues we have got with the Cofunds migration. Our only concern at this moment in time is dealing with our current challenges not on acquiring more businesses.”