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Aegon reviews processes after charges error

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Aegon is to make changes to how it communicates charges after admitting it sent conflicting information about a customer’s fund fees.

Correspondence seen by Money Marketing between an adviser – who wishes to remain anonymous – and the provider shows total expense ratios differed across a range of funds when quoted three weeks apart.

The adviser says: “Different charges given at different times led us to provide incorrect information to our client at a key point in time as he’s nearing retirement – this could have affected our advice.”

In addition, Aegon admits it is investigating projections provided for two of the adviser’s clients. The clients were considering transferring group personal pensions to L&G following their employer’s decision to switch pension providers.

The adviser says: “We had an ongoing issue where you [Aegon] continually providing us with incorrect projections that left us at high risk of providing incorrect pension transfer advice.”

They add: “Worse, this was in the matter of a scheme closure whereby potentially thousands of members of this scheme were also going to be given duff information that could influence their decision to transfer or not.”

An Aegon spokesman says: “We are committed to offering every customer a high level of service and apologise for the delays caused.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I have had numerous similar problems with AEGON. We have had several cases where projections provided by AEGON do not match the charges that have been disclosed. We found this out through using a market leading bit of software to analyse the projections. When I brought this to the attention of the FCA I was originally told that I must be wrong. We then produced a spreadsheet to back up the calculations provided by the software and prove that the disclosed charges could not possibly match the projections. Following this the FCA said that they would investigate matters and speak to AEGON. I asked them to let me know when they had resolved this issue with AEGON so that I could get on with advising my client correctly and the FCA told me that they could not let me know this, as all of their correspondence with AEGON would be confidential. TCF anyone?

  2. I should make it clear that I had raised this issue directly with AEGON before referring it to the FCA. However, AEGON just basically put up brick walls and said that their projections are produced by their software and that they were correct. There didn’t seem to be any willingness on their part to look into the issue properly and resolve it.

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