An adviser has complained to the Financial Ombudsman Service after Phoenix Life failed to pay a vulnerable client.
Vanessa Barnes, chartered financial planner at Hannay Wealth LLP, told FTAdviser her client, who is vulnerable and living with cancer, has been trying to get access to his money under the small pots policy since February and has had difficulty in doing so.
Phoenix initially asked the client to provide a driving licence and passport - neither of which he has ever had - so he could not provide.
The firm then asked for a utility bill and a government issued correspondence, of which both originals were sent to Phoenix.
However Barnes and the client still received no response.
Barnes said Phoenix was told from the start that the money should be paid in to the client's wife’s account, and provided her birth certificate and their marriage certificate.
The extra ID checks were the government issued letters (DWP) and utility bill which were sent on July 4.
Phoenix then rejected the originals and insisted on certified copies which were sent on August 8.
Barnes explained that the firm would not give any reason for the insistence on a copy other than that it could not verify online.
“Phoenix gives the impression of hiding beneath a call centre wall,” Barnes said.
“They will not put you through to anyone actually dealing with a query, they will only take a message. I don’t think the regulator should allow this type of takeover/purchase of legacy business unless there is an agreed minimum service guarantee.
“My colleagues and I think that the application of consumer duty rules to legacy business cannot come fast enough - it looks like Phoenix will have to change a significant part of their usual practice if they are to demonstrate a proper framework that is focussed on good outcomes for clients.”
Barnes also said she was also promised manager and compliance department call backs that never materialised.
A spokesperson for Phoenix Life said: “We carry out the necessary checks to ensure we verify the identity of our customers before making payment, especially in the case where we are being asked to pay into a different person’s bank account.
“In the case of [this client] he was unable to provide a passport or driving licence and in line with our process we carried out extra verification checks, including asking for alternative evidence of identity, which we received on August 10.
“Our investigation shows that we missed an opportunity to settle the claim slightly earlier, particularly considering his personal circumstances.
“We have made arrangements to pay[the clients'] claim in full via immediate bank transfer and would like to apologise for any inconvenience this has caused him."
sonia.rach@ft.com
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