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Pru reviews Retirement Account as service issues spark possible redress

Administration issues hit new Retirement Account after unexpectedly high demand

Prudential 480Prudential has said it will provide “appropriate redress” for any customers affected by service issues with its new Retirement Account.

Prudential launched the advised service in September last year, which combines accumulation and income withdrawals in one planning account.

It also has options to purchase capital guarantees or a secure minimum income, and charges range from 0.25 per cent to 0.65 per cent if the customers want these added extras.

Unexpectedly high demand has led to administrative errors with the product, however.

A Prudential spokesman says: “The demand for our new Retirement Account has been much higher than we expected and unfortunately that has impacted the service we have been able to provide to customers and advisers. We’ve been working very hard to resolve this and I’m pleased to say that our service levels have now been restored.”

The spokesman adds that the firm is currently conducting a review to see if anyone is entitled to redress.

He says: “We want to ensure that no one has been financially disadvantaged and therefore we are reviewing relevant transactions and will be providing appropriate redress. We are very sorry for any problems this has caused for customers or advisers and we are writing to customers to apologise.”

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Comments

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

  1. Robert Milligan 26th June 2017 at 10:06 am

    The pru have dumped all its admin onto the IFA, we have to disclose our Fee’s for advice to the client, now the Pru expect us to do their inputting for them, so they have reduced by 0.01 the Charges so in fact the client is being financially disadvantaged The Application form the Pru expects us to fill in is pure obfuscation

  2. Have to agree with Robert about Prudential forms, they are always twice as long as anyone elses, often obscure in what they want. It is all very well saying it can all be done online, but you would never sit with a client and say “OK we’ll just fill this in online while you are here”, or maybe you would as it would show the client what we have to put up with although that would certainly reduce their confidence in the chosen company.
    As regards dumping all the admin on the IFA, companies have been moving this way for years with platforms and it will only get worse, result lower costs for providers more costs for IFA’s which will be passed on the clients.
    The FCA will be happy to see provider contract costs reducing, assuming they do, then question why IFA’s are charging more.

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