Norwich Union has admitted it has been holding back on IFAs’ commission payments for up to eight weeks due to admin problems with its Lifetime wrap proposition.
Lifetime is moving its Cambridge operation to NU’s York office and some IFAs have been experiencing significant issues with service standards, transaction times and receipt of payment.
NU director of wraps Angela MacDonald says: “We have had problems with cases where the hold-up has affected the distributor as they are at the end of the process.”
She says any payments that took place from before Christmas would have been affected but have all now paid out.
MacDonald says although the problems are not yet over, she anticipates that by June, the operation should be fully transferred to York.
NU says wrap is a fledgling market with all players suffering teething problems.
She says: “We recognise that as wrap shifts into a different space, transaction time needs to be in hours rather than days. Our ambition, once we have finished the transition, is to offer a fully online proposition.”
Max Horne Group CFP Max Horne says: “I think their service promise says they will complete transactions in five days. There are paper-based propositions out there that are qui-cker than that. You cannot compete in a wrap space with such poor technology.”