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Cofunds nears top for 2018 FOS investment complaints

New data from the Financial Ombudsman Service shows investment complaints about Cofunds are some of the highest in the industry in its first year on the list.

This follows a difficult year for the platform after parent group Aegon’s replatforming problems and the delayed migration of Cofunds and subsequent operating issues.

Aegon bought Cofunds from Legal and General for £140m three years ago and merged it with its in-house platform last May, moving around 400,000 customers.

A total 169 complaints about Cofunds were made to the FOS between July and December last year.

The data only lists firms with more than 30 complaints resolved. The FOS says 63 per cent of the 169 investment complaints were resolved, which represents about 37 complaints.

The reported average across the FOS’s list was 35 per cent.

Aegon platform distribution director Coyle exits

Speaking to Money Marketing, an Aegon spokeswoman says “significant strides” were made in the second half of 2018 and resources mobilised to address outstanding service issues.

She says: “There was a huge emphasis placed on restoring service levels associated with the Aegon platform following the migration of former Cofunds users to it in May [and] by the end of the year core operational services had returned to target levels.

“The focus now for the Aegon platform is on ensuring we provide the enhancements that advisers have requested. We are clear on the functionality that needs to be prioritised for the coming months and beyond this have a continual programme of improvements planned for the service.”

Aegon claims Cofunds integration will save £60m a year

Cofunds had the second highest number of complaints relating to investments behind Barclays. NatWest, Lloyds Bank, Hargreaves Lansdown and Santander Bank were also on the higher end of complaints.

Aviva, which also struggled with replatforming last year, had 144 complaints of which 25 per cent were upheld. Investment-specific complaints for Aviva were up 47 on those received for the first half of 2018.

Users were unable to access Aviva’s platform for close to a week after it moved to troubled tech provider FNZ 12 months ago.

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