Aegon has compensated a client after a series of errors led the provider to transfer their pension pot to another individual with the same name.
When an adviser, who spoke to FT Adviser, took on a new client, one of the tasks he faced was to review several of the individual’s workplace pension pots.
The adviser said: “The client in question had a plan with Aegon from employment some years ago which had been left deferred with them.
"He approached us last year to review his various plans and we were told that the plan had been cashed in a few years ago.
"It turned out that someone with the same name as our client had approached them and they had paid the full sum out without any checks to ensure it was the right person. As you can imagine, the client complained and his plan was reinstated at Aegon’s cost.”
An Aegon representative has confirmed to FT Adviser that the error occurred, and said: “During an exercise to find updated addresses for customers with whom we had lost contact, we mistakenly updated this policy with details for the wrong person who had the same name and date of birth due to human error. This person was then able to access the funds.
"Once we were aware of this mistake, we reinstated the funds to the correct policyholder. We ensured no financial detriment and paid compensation, which was accepted.
"The security of our customers’ accounts is of the utmost importance to us. We apologised for this mistake and reassure our customers that we have robust processes and controls in place to minimise the risk of this happening.”
But that was not the end of the experience for either the client or the adviser.
Following this, a decision was taken to transfer the pot to Fundment.
The adviser spent “months” chasing Aegon on behalf of his client, and then received an email stating the funds had been transferred to St James's Place, rather than Fundment.
It later emerged that Aegon’s email to the adviser was not accurate, the transfer had happened correctly, with the funds moving to Fundment.
The adviser said: “{My client} is very upset. He believes it is fortunate that he is fairly financially literate as these errors may never have been solved otherwise.”
The Aegon representative said: “The delay to the fund transfer was an administrative error and we acknowledge this was not the standard of service expected. The transfer has now been made.”
david.thorpe@ft.com
