Prudential Stole My Money!

PeacefulWaters

Did they put it all in Icelandic banks?

ScottyLP

They gaurenteed the fund for 30 days by moving it to cash as interest is likely to be paid monthly rather than daily like markets are known to fluctuate. At no point in that transcription you gave us does the agent mention that after the 30 days they would be changed back to the original investment plan

mgdavid

geoffH wrote: »

Thanks for all your responses.
I should just clarify a couple things I left out so as to keep the info as brief as possible.
1. It wasn't until late 2012 early 2013 that I discovered the fund was still in the cash fund.
2. I'm sure I did get yearly statements but like most people, only skipped over them and year on year, a fund isn't likely to change significantly so wouldn't have noticed it was the same as the previous year.

Sensible people don't skip over them, and now you know why.

geoffH wrote: »

3. I am grown up!
This is the actual words the agent said, "I just wanted to inform you that by issuing the retirement instruction form, the funds, your funds, will be switched to the cash fund so that we can guarantee your funds for 30 days"
So, my points being 1. If it was to remain in the cash fund forever, which it has, what is the reason for mentioning 30 days?

Because you wanted to withdraw the cash

geoffH wrote: »

2. What happens after 30 days?

You've left it a bit late to ask that.

geoffH wrote: »

3. Why would I expect to have to go back to the Prudential to let them know I'd changed my mind,

Because they are not mind-readers (and it's good manners to explain you've changed your mind, and thank them anyway)

geoffH wrote: »

if I had reasonably assumed

it is *never* reasonable to assume; always check especially where finance is involved.

geoffH wrote: »

that after 30 days, the cash would revert back to the original fund?

The FOS interpretation of what the agent said was that it meant that the funds were being put in the cash fund to guarantee the value for 30 days. But really, the same points above apply and surely the only valid interpretation is mine in response to this five second statement at the end of a long phone conversation using much financial jargon some of which I didn't understand.
Any further thoughts?

Don't 'interpret' - either take it at face value, or ask for clarification.
You won't win.

dunstonh

Fund switches work like this

1 - you tell them to switch funds.
2 - it stays in that fund until you tell them to switch it again.

The only time a provider will automatically switch funds without your permission is if your fund closes and a replacement is used (and you are informed in advance if that is the case). Or if it is part of an automatic risk reduction as you get closer to retirement (although you agreed to the process when you entered into the contract).

Pru did not have advisers in 2008. So, this would fall under non-advised instruction.

i have looked at the FOS site for the complaint but its not yet published. Either it was not an ombudsman ruling but an adjudicator or they are behind.

gadgetmind

geoffH wrote: »

year on year, a fund isn't likely to change significantly

Cash funds won't, bond funds will be a little more volatile, and equity funds massively more volatile. Annual swings would easily be 30% or 50% for equity heavy funds.

kinger101

After Pru had transferred it to cash, why would you expect them to reinvest it in something else? This would require an active decision on your part on which stocks and funds to invest in. Like others have said, stop blaming someone else for you own inability to manage your own retirement fund. An independent body has already ruled that the Pru is not at fault.

PuzzledDave

I'm just imagining the thread in the other trouser leg of time where the Pru did Reinvest the money in July 2007...

========================================

The Pru stole my money !

After thinking about cashing in, the Pru put my money in a cash fund for 30 days to protect its value against market variations. I agreed to this. However there was no agreement what to do after 30 days and they put all the money in Northern Rock and Lehman Brothers shares, now I have nothing

========================================

Maybe it's a good idea that they didn't choose a random fund to move your cash into without consulting you.

jem16

geoffH wrote: »

A couple of years ago I called Prudential to get the value of my pension. I discovered that in 2008 it had been transferred into a, 'cash fund' and so hadn't accrued any interest since then and I've lost over £30,000!

Pension funds don't accrue interest so how have you calculated that you have lost £30,000?

geoffH wrote: »

1. It wasn't until late 2012 early 2013 that I discovered the fund was still in the cash fund.

2. I'm sure I did get yearly statements but like most people, only skipped over them and year on year, a fund isn't likely to change significantly so wouldn't have noticed it was the same as the previous year.

Sensible people don't skip over statements. You should have read them.

3. I am grown up!

Grown ups accept responsibility for their own actions. They do not try to blame other people.

The FOS interpretation of what the agent said was that it meant that the funds were being put in the cash fund to guarantee the value for 30 days. But really, the same points above apply and surely the only valid interpretation is mine in response to this five second statement at the end of a long phone conversation using much financial jargon some of which I didn't understand.

Any further thoughts?

If you didn't understand the financial jargon, you should have sought proper advice from someone who does.

The FOS are correct as are Prudential and you have now learned an expensive lesson.

I assume you switched your fund/s in 2012 when you did eventually notice?

mania112

geoffH wrote: »

This is the actual words the agent said, "I just wanted to inform you that by issuing the retirement instruction form, the funds, your funds, will be switched to the cash fund so that we can guarantee your funds for 30 days"

Have you read what you wrote?

1) It says the funds will be switched to a cash fund
2) It says this is being done because they have issued the retirement instruction form (so it's part of their standard process)
3) It says this also allows them to guarantee the value for the next 30 days (as it happens they could have guaranteed it for 6 years, it doesn't matter - you're complaining because it hasn't grown, not because it's gone down).

You didn't check your statements, you've complained to the FoS to no avail.

Do YOU think there's been a mistake from someone other than yourself?

moneyfoolish

I would suggest that the majority of the non-financial general public had been told that their fund was being switched into cash for 30 days then they would probably also assume that it would be switched back after 30 days. If not, the mention of 30 days is totally irrelevent as what it actually means is that it's being switched into cash forever or until further instructions are received.

Don't forget that most people on here think of finance in a totally different way to the general public. My wife, for example, who is very bright would not have a clue about anything financial other than how to spend money. She knows what a bank account, a debit card and a credit card are but that's about the end of her financial knowledge. She's just not interested as I've always looked after our finances.

However, I think most people would certainly have telephoned the Pru before the 30 days had expired to check exactly what was going to happen to the cash.