View more on these topics

Aviva sets aside further £90m for Friends Provident DB transfer advice issue

Aviva-signage-building-2013-700.jpgAviva has set aside an additional £90m for a historic problem relating to defined benefit pension transfer advice given by tied Friends Provident advisers.

Aviva says 90 per cent of the advice was given before 2002 and relates to the transfer of DB pensions into Friends Provident pensions.

Aviva savings and retirement managing director Lindsey Rix says the provider is carrying out a review on whether the advice given to around 4,000 customers was suitable.

Rix says: “We have notified the regulator and are having conversations with them. It is a historic issue we have discovered and we are dealing with as promptly as we possibly can.”

The £90m provision is additional to the £75m set aside at the end of last year.

Aviva’s half-year results statement says: “The issue does not affect any other part of our business. Affected customers will not be financially disadvantaged. The group has notified its professional indemnity insurers and intends to make a claim on its insurance to mitigate the financial impact.”

Aviva and tech provider take joint responsibility for platform errors

Speaking to Money Marketing after the results announcement today, Rix says Aviva is “out of the worst” of the issues relating to its replatforming project.

Aviva shifted assets from Bravura technology to FNZ in January but that process has been riddled with glitches with advisers and clients suffering issues with payments and trades.

The results showed net inflows on the platform of £2.2bn, which was a drop from the £3bn net inflows in the first half of 2017.

Total assets on the platform grew by 12 per cent over the year to reach £22.7bn.

Rix says: “We have seen less inflows than we saw in the first half of last year as we have been working through the challenges we have had with the migration. We think we are out of the worst of that now and we are looking forward to maximising on the better functionality we have on the platform.”

Rix would not comment on the number of complaints Aviva has received over the replatforming problems, how much compensation has been paid out so far or how much provision has been set aside for compensation.

The pain of replatforming: Inside Aviva’s tumultuous tech upgrade

She also would not confirm the cost of the replatforming project to date and whether any fee payable to technology provider FNZ had been reduced because of the issues.

However, Rix says: “We have got a strong working relationship with FNZ and we are working together to fix the issues we have had over the first half of the year and our teams are working collaboratively to put our customers and advisers first and making sure we rectify the issues we have seen.”

She says there has been a “small number” of complaints to the Financial Ombudsman Service about the replatforming.

Recommended

arnie ppi
1

Lloyds prepares for PPI claims rush ahead of deadline

Lloyds is reportedly planning to bolster its provision for payment protection insurance costs as consumers move to lodge complaints before the August 2019 deadline. According to The Times, analysts at UBS understand Lloyds could add £410m to its provision for April to June. Lloyds has incurred £18.8bn of PPI costs and increased its provision by […]

Home-Houses-Different-Mortgage-Rent-700.jpg

FCA welcomes lenders’ pledge to help ‘mortgage prisoners’

The FCA has welcomed a commitment from three mortgage industry bodies to help borrowers tied to reversion rates switch products. UK Finance, the Building Societies Association and the Intermediary Mortgage Lenders Association announced the commitment today. The agreement, which covers 59 authorised lenders representing 93 per cent of the UK residential mortgage market, comes after […]

Delivering advice and guidance in the workplace

Three advisers share their ideas and experiences of helping employees with their financial decisions The workplace is instrumental in engaging people to save for retirement. How are advisers helping employers provide advice or guidance to their employees? Telephone guidance Financial education provider and advice firm Wealth at Work recently launched a telephone guidance service to […]

In search of value? Banks and the sectors leading Europe’s recovery

By Rob Burnett, head of European equities, Neptune  After nine years of underperformance versus quality growth, Rob Burnett, manager of the Neptune European Opportunities Fund, believes that value strategies have reached an inflection point. Watch Rob discuss why he believes value is well positioned to resume its historical trend of outperformance. Click here to watch […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com