Aviva explains itself to advisers after £8.2m FCA fine


Aviva has responded to adviser concerns over how its platform holds client money after receiving an £8.2m fine from the FCA.

Aviva Pension Trustees and Aviva Wrap UK were fined £8.25m by the FCA on 5 October for oversight failures in outsourcing arrangements for client assets on its advised platform.

The FCA said Aviva failed to dedicate adequate resource and technical expertise to enable them to implement effective oversight arrangements, resulting in their delayed detection and rectification of client asset risks and compliance issues.

In a note for advisers seen by Money Marketing, Aviva provides answers to key questions about the fine.

The insurer confirms in the note from January 2013 to September 2015, Citi managed and administered the transactions on its system.

It then outsourced these responsibilities to Genpact in August 2015.

But Aviva says it did not stop working with any of its third parties because of the client money issues, and says they were not responsible for any of the failings highlighted by the regulator.

The note says: “This FCA action relates to Aviva’s oversight and not to a third party.

“We take responsibility for this matter and have worked closely with the FCA to help address the issues that were identified.”

A Genpact spokeswoman says: “Genpact is one of a number of partners to Aviva, having acquired the OpenWealth business from Citigroup in August 2015.

“Genpact owned the business for the final two weeks of the period under the FCA review and therefore cannot comment on any period prior to this date, other than to note that the FCA did not find any fault with Genpact or the OpenWealth business.”

In April, Aviva confirmed it was moving off Bravura-backed Genpact to FNZ but the insurer has also emphasised this was not related to the issues identified by the FCA.

In the adviser note, Aviva says: “Aviva made the decision some time ago to build on its successful adviser platform strategy by moving it to FNZ, which will allow it to give advisers and clients greater flexibility while maintaining the familiar interface.

“This is part of our long-term platform strategy and is separate to this matter.”