Phoenix Life has agreed to pay nearly £3,000 to an IFA’s client after their complaint was highlighted by Money Marketing.
Earlier this month, Money Marketing reported that an IFA was preparing to take Phoenix to court after the company, a Financial Ombudsman Service adjudicator and an omb-udsman, rejected his claim.
Fernleigh Wearden & Co partner Paul Wearden’s client lost £2,800 as a result of delays in transferring his pension pot into a money fund in September 2008.
Phoenix argued it could not carry out the transfer because the switch forms were not completed properly and Wearden incorrectly named the fund the “cash” fund instead of the “money” fund in paperwork.
Wearden claims that the payout is an “embarrassment” to the FOS and a “a victory for common sense”.
A Phoenix Life spokeswoman says the decision to reimburse the client follows a change to the firm’s switch process after a review.
She adds: “Based on the review, we have decided to treat this as a special case. We will therefore be arranging a transfer of an additional £2,777, plus interest.”