Complaining about NEST to FCA

Bucksnaturetog

Hi,

Has anyone else had either issues or concerns regarding to both NEST (National Employment Savings Trust) as a pension provider you are auto enrolled into if you are a PAYE employee who company doesn't offer you a work based pension or the FCA themselves?

Some of my concerns I have raised make me believe that all the contact either with NEST or even the FCA isn't dealt with by UK based staff or at least competent staff. Purely as an example the FCA have replied to me telling they don't know who NEST are! Even a simple Google of the acronym's NEST and FCA would give them the details they need. But, the FCA are trying to say it isn't their issue as the NEST aren't regulated by the FCA...... when in fact they are.

Any help or advice would be greatly appreciated as I am at my wits end trying to transfer a small amount of money out of NEST.

Also, how do we ensure any complaints we raise regarding financial matters are handle in an acceptable manner as there seems to be a pattern emerging here that isn't addressing the issues of the people who are suffering or struggling and this just adds to the issues. 

Many Thanks

Darrell

Malthusian

But, the FCA are trying to say it isn't their issue as the NEST aren't regulated by the FCA...... when in fact they are.

No they aren't. The FCA is correct. NEST is regulated by the Pensions Regulator.

Your first port of call is to make a formal complaint to NEST. If they haven't resolved the complaint to your satisfaction within eight weeks, you can take your complaint to the Pensions Ombudsman.

*edit* What I said wasn't wholly correct - NEST does have some subsidiary companies registered with the FCA, which may have caused confusion. (I'm guessing for internal investment purposes.) But they aren't relevant to you; your complaint is against NEST, not internal non-public-facing subsidiaries. NEST's "Legal" page and "how to complain" leaflet confirms that for a NEST member the relevant bodies are the Pensions Regulator and Pensions Ombudsman.

dunstonh

Purely as an example the FCA have replied to me telling they don't know who NEST are! 

You need to remember that the FCA do not handle consumer complaints.   The frontline staff are generally there to point people in a different direction as they have contacted the FCA in error. Just like you have.      So, their knowledge of providers will be limited.

Any help or advice would be greatly appreciated as I am at my wits end trying to transfer a small amount of money out of NEST.

As mentioned above, you don't contact the FCA.    
You make a complaint to NEST and they have to follow the regulated complaints process.    If you disagree with the outcome, then you can then refer to the FOS  or the PO depending on the nature of your complaint (in some cases you can decide which one is it can straddle both of them).

Also, how do we ensure any complaints we raise regarding financial matters are handle in an acceptable manner as there seems to be a pattern emerging here that isn't addressing the issues of the people who are suffering or struggling and this just adds to the issues. 

The complaints process is regulated.  You don't need to worry yourself about how regulation takes place.   Focus on your issues and don't get involved in irrelevant things.

So, what are your issues?
You say it is linked to trying to transfer a small amount of money out of NEST.   Do you mean transferring the whole pension?  Or using income drawdown/UFPLS?

Have you recently stopped employment with the employer that used NEST as their auto-enrolment scheme?  A very common problem with AE schemes is that they cannot transfer them out until the employer has told the scheme that you are no longer an active member.

Bucksnaturetog

Hi just for any clarification NEST have been asked twice for their formal complaints process to enable me to follow this. Staff just say go on the website, I have reiterated numerous times to them that I want a hard copy of their formal complaints process to ensure I have the latest copy of this and I adhere to this,

Both the FCA and the Pensions Regulator have been made aware of the issues and my complaint.

Have you recently stopped employment with the employer that used NEST as their auto-enrolment scheme?  A very common problem with AE schemes is that they cannot transfer them out until the employer has told the scheme that you are no longer an active member.

Simply put yes and no, I left the employment in March 2020 and yet the company I worked for didn't let NEST know. I have challenged NEST around the processes they claim are in place to ensure this is remedied as clearly it either isn't implemented or doesn't work.

Then once you end the employer contributions yourself you then have to wait until the next payment run (6th June in my case) until the transfer can take place. Prior to this date I made Hargreaves Lansdown, my new SIPP provider, of the pending transfer of the funds and because of the issue they gave me a date of June 16th as the latest date that the funds would be transferred by. On the 15th June NEST then refused to transfer the monies as they required formal ID from myself. This request has been ongoing since April and not once had any mention of ID being required been raised. When I spoke to NEST they claimed it is detailed on their website and it isn't.

I never had to provide ID to open the NEST pension as clearly my employer opened this on my behalf and the ID NEST requested to allow the transfer to happen had to be submitted to Hargreaves Lansdown to allow me to open my SIPP with them. These delays have created an issue whereby it has taken since April to complete a simple transfer of the most basic of pension funds there possibly is.

I had actually also transferred a pension from L & G that was 15 times the size of the NEST pension with no issues at all and no request for ID either.

Also, I had been told in the past by a NEST call handler that I couldn't transfer money out of NEST to another pension provider until I was 55. Something I challenged at the time but they were adamant this was the case. I have had my own SIPP for 20 years and so am not new to all this, but they give out factually incorrect information as well. Something i have raised as well in my complaint.

dunstonh

Hi just for any clarification NEST have been asked twice for their formal complaints process to enable me to follow this. Staff just say go on the website, I have reiterated numerous times to them that I want a hard copy of their formal complaints process to ensure I have the latest copy of this and I adhere to this,

I doubt they have a consumer-facing document explaining the complaints process.       Why do you even need it?   The process is regulated by the FCA and is the same with all FCA regulated firms.   You don't have to adhere to anything other than say "I wish to complain about......"

Both the FCA and the Pensions Regulator have been made aware of the issues and my complaint.

Neither of them deals with consumer complaints.  So, wasting your time there.

Simply put yes and no, I left the employment in March 2020 and yet the company I worked for didn't let NEST know. I have challenged NEST around the processes they claim are in place to ensure this is remedied as clearly it either isn't implemented or doesn't work.

This is not the fault of NEST.  This is the fault of the employer.   You need to get the employer to do it.

Then once you end the employer contributions yourself you then have to wait until the next payment run (6th June in my case) until the transfer can take place. Prior to this date I made Hargreaves Lansdown, my new SIPP provider, of the pending transfer of the funds and because of the issue they gave me a date of June 16th as the latest date that the funds would be transferred by. On the 15th June NEST then refused to transfer the monies as they required formal ID from myself. This request has been ongoing since April and not once had any mention of ID being required been raised. When I spoke to NEST they claimed it is detailed on their website and it isn't.

Most firms will try and use the electronic method of verification but if that fails, they will revert to the old way of manual verification.  Technically, there isn't actually a need to comply with Anti-money laundering requirements on transfer but most firms will where there is no adviser involved.

I never had to provide ID to open the NEST pension as clearly my employer opened this on my behalf and the ID NEST requested to allow the transfer to happen had to be submitted to Hargreaves Lansdown to allow me to open my SIPP with them. These delays have created an issue whereby it has taken since April to complete a simple transfer of the most basic of pension funds there possibly is.

It can be one of the downsides of AE that the ID is handled on exit rather than entry.  Whereas individual schemes handle it on entry.

I had actually also transferred a pension from L & G that was 15 times the size of the NEST pension with no issues at all and no request for ID either.  L&G typically get verification up front.

Also, I had been told in the past by a NEST call handler that I couldn't transfer money out of NEST to another pension provider until I was 55. Something I challenged at the time but they were adamant this was the case.

Unfortunately, call centre workers across the board tend to be low knowledge and are encouraged not to say much at all beyond basic facts.    When they do drift off their remit, they risk giving incorrect information.   That seems to be the case here.  Possibly mixing up drawing the pension and transferring it.

The bottom line on all this is that you make your complaint to NEST.  No-one else.     Although NEST cannot resolve it until the employer tells them that you are no longer an active member.  So, contacting the employer should be chased as well.

Marcon

Malthusian said:

But, the FCA are trying to say it isn't their issue as the NEST aren't regulated by the FCA...... when in fact they are.

No they aren't. The FCA is correct. NEST is regulated by the Pensions Regulator.

Your first port of call is to make a formal complaint to NEST. If they haven't resolved the complaint to your satisfaction within eight weeks, you can take your complaint to the Pensions Ombudsman.

dunstonh said:

Any help or advice would be greatly appreciated as I am at my wits end trying to transfer a small amount of money out of NEST.

As mentioned above, you don't contact the FCA.    
You make a complaint to NEST and they have to follow the regulated complaints process.    If you disagree with the outcome, then you can then refer to the FOS  or the PO depending on the nature of your complaint (in some cases you can decide which one is it can straddle both of them).

Also, how do we ensure any complaints we raise regarding financial matters are handle in an acceptable manner as there seems to be a pattern emerging here that isn't addressing the issues of the people who are suffering or struggling and this just adds to the issues. 

The complaints process is regulated.  You don't need to worry yourself about how regulation takes place.   Focus on your issues and don't get involved in irrelevant things.

I think you're both overlooking the fact that NEST is an occupational pension scheme and the complaints process is the statutory one known as the Internal Dispute Resolution Procedure, not the regulated one. I've just looked on NEST's website and searched under IDRP (and was asked if I meant 'Idea'!) - no joy. Searching on 'complaint' didn't get me any further. 

OP, I'd give NEST a call and ask them for a copy of the IDRP - although before doing that, you might want to talk to your former employer again and ask them to confirm they have advised NEST you've left their employment. 

Bucksnaturetog said:

Also, I had been told in the past by a NEST call handler that I couldn't transfer money out of NEST to another pension provider until I was 55. Something I challenged at the time but they were adamant this was the case. I have had my own SIPP for 20 years and so am not new to all this, but they give out factually incorrect information as well. Something i have raised as well in my complaint.

That used to be the case, so depending on when you asked the question, the answer might well have been correct.

Malthusian

Marcon said:

I think you're both overlooking the fact that NEST is an occupational pension scheme and the complaints process is the statutory one known as the Internal Dispute Resolution Procedure, not the regulated one. I've just looked on NEST's website and searched under IDRP (and was asked if I meant 'Idea'!) - no joy. Searching on 'complaint' didn't get me any further. 

Takes a few clicks from "Support / Contact Us". But to be fair there is a lot of scrolling to do to find it. https://www.nestpensions.org.uk/schemeweb/dam/nestlibrary/NEST-how-we-handle-complaints.pdf

xylophone

Searching on 'complaint' didn't get me any further. 

https://www.nestpensions.org.uk/schemeweb/nest/contact-us/complaints.html

They also offer a pdf booklet How we handle complaints.

xylophone

This request has been ongoing since April and not once had any mention of ID being required been raised. When I spoke to NEST they claimed it is detailed on their website and it isn't.

I saw this

https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/transfers/transfer-money-out-of-nest.html

• Once you receive the transfer pack, you’ll need to read the instructions in it carefully before entering the details.
• You’ll need to send us the completed form to the address mentioned in the form for us to start processing your request.
• We may ask you to send us some proof of identification if required by post.
• If you want to transfer your Nest retirement pot to an overseas scheme you need to call 0300 020 0090.

To avoid postal delays, please use your Nest secure mailbox to send documents to us electronically. We can’t accept copies of birth, death, marriage or civil partnership certificates. If you are sending one of these documents, you’ll need to send the original document by post. 

Marcon

Malthusian said:

Marcon said:

I think you're both overlooking the fact that NEST is an occupational pension scheme and the complaints process is the statutory one known as the Internal Dispute Resolution Procedure, not the regulated one. I've just looked on NEST's website and searched under IDRP (and was asked if I meant 'Idea'!) - no joy. Searching on 'complaint' didn't get me any further. 

Takes a few clicks from "Support / Contact Us". But to be fair there is a lot of scrolling to do to find it. https://www.nestpensions.org.uk/schemeweb/dam/nestlibrary/NEST-how-we-handle-complaints.pdf

Thank you - I got that far and then kept being sent round in circles when I tried!

jamesd

Bucksnaturetog said:

Also, I had been told in the past by a NEST call handler that I couldn't transfer money out of NEST to another pension provider until I was 55. Something I challenged at the time but they were adamant this was the case. I have had my own SIPP for 20 years and so am not new to all this, but they give out factually incorrect information as well. Something i have raised as well in my complaint.

In the past that answer was correct. It no longer is. Similarly, in the past NEST was barred from accepting individual transfers in and from having active members with contributions not coming from their employer.