Inefficiency with AVCs

EdInvestor

dunstonh wrote: »

What if it does take 6 weeks and the markets moves up 3%. Will the individual then complain they were not left in equities?

Not a problem if they are prompted to make the choice.I'm amazed the individual was not asked about this.

Possibly a good addition to have it on a form.

Indeed so.It's not such a problem for someone going into drawdown of course, but a person planning on an annuity would have a right to be angry IMHO.

chesky369

I've just discovered that the other fund has STILL not been disinvested, as I requested (see my first post) - Friends Provident require additional signatures from the Trustees and have mailed the documents to the administrators, who say they sent it on to us but nobody has received it. So my wishes haven't been acted on after over two months.

Jennifer_Jane

Quite frankly I think I would be inclined to try to get the financial ombudsman or the FSA, or some such on to this. This is terrible. Dunstonh - is there really no recourse for the OP?

It's irrelevant if the OP would have gained. Even if markets had increased but the exchange had been done (ie effectively an opportunity cost) he would have accepted that because his wishes had been carried out. He is 2 months off retirement and to lose this amount of money is terrible.

Jen

dunstonh

Quite frankly I think I would be inclined to try to get the financial ombudsman or the FSA, or some such on to this. This is terrible. Dunstonh - is there really no recourse for the OP?

FSA wont be interested as its not their job to review individual complaints (they do it at corporate level to look for trends). FOS wont consider a complaint until you have excercised the complaints proceedure and they may not even be the regulatory ombudsman here.

However, there has to be a strong case here. A fund switching form does not require any trustee action and can be handled simply by the provider. However, even if it went between administrator and provider that only takes a day or two. I would certainly complain.

EdInvestor

Hi chesky

chesky369 wrote: »

My IFA advised me that, due to the volatility of the stock market, I should arrange for my AVC funds to be placed in a cash deposit account.
I e-mailed the fund administrators on 19 June and, after a further three e-mails and a 'phone call, the authorisation papers were sent to me on 12 July..The transfer was finally made on 3 August

What authorisation papers are you talking about here? Normally a fund switch can be done on the telephone, you don't have to sign forms.

Since you have an advisor I am a bit surprised to hear that he didn't arrange this, but apparently left it to you.Why was that?

Debt_Free_Chick

dunstonh wrote: »

A fund switching form does not require any trustee action and can be handled simply by the provider. However, even if it went between administrator and provider that only takes a day or two. I would certainly complain.

It could need a trustee signature, if the trustees have not given the administrators authority to disinvest on members instructions.

Chesky - complain first. If no satisfaction, then ask for the scheme's Dispute Resolution Procedure. Use the DRP and involve The Pensions Advisory Service if necessary. You can involve TPAS at any stage during the DRP.

chesky369

The joke is that I'm a Trustee, so I sign a lot of necessary papers anyway. The major problem is that, because of the administrators' inefficiencies in the past, we have now appointed another company and have given them notice. So we're in mid-hand-over and they're being bloody-minded. What with that and the stock market situation, couldn't have picked a worse time to retire.

EdInvestor

It's no wonder people have lost confidence in pensions.

Even the trustees can't get the system sorted.Dysfunctional is the only word for it.

chesky369

Ed Invester I do have a financial advisor (see my first post) but he could hardly arrange it, since it’s part of my Company pension scheme – and that’s what we were paying the administrators for. The deed that was required was actually because the administrators had failed to inform the companies of the changes of the names of the Trustees, so these were out of date. I have confidence in pensions, just some of the people around them are less than efficient.

EdInvestor

chesky369 wrote: »

...some of the people around them are less than efficient.

Couldn't agree more.The standard of customer service is absolutely diabolical.