Prudential 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.”