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Advisers: Providers are failing to uphold consumer duty

Advisers: Providers are failing to uphold consumer duty
Have your Say: What readers have told FT Adviser.

FT Adviser readers had plenty to say about providers, the consumer duty and service levels after one adviser had trouble placing an annuity with Scottish Widows.

One reader was sympathetic after also having troubles placing annuities with the provider.

As mentioned in our comments, they then questioned whether consumer duty was having the desired impact on providers and the service they provide.

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They added: “Seems to me that consumer duty has been viewed as an important part of an advisers’ business and implemented accordingly and totally ignored by many product providers. Perhaps the FCA should take action accordingly?”

In an email to the editor, another adviser said: “Consumer duty only seems to apply to financial advisers, the big pension companies just ignore it.”

It comes after FT Adviser reported that every time an adviser tried to call Scottish Widows to place an annuity, he was directed to automated messages asking for the policy number. 

After he felt he was going round in circles trying to place the business for his client, he decided to call the complaints team and get a speedy resolution, but to no avail.

Advisers have taken to the comment section to share their experiences with Scottish Widows.

rob.c59142
We have tried to use Scottish Widows for annuities. Utter shambles. Not sure why the FCA have not investigated SW under Consumer Duty. There is a SW Complaint Platform on Facebook and it does not make good reading.
richard.w70254
Anything to do with Lloyd’s banking group spells awful service. Scottish Widows retirement team has a 40 min wait at present if you ring them. Last year it took 7 months to transfer an old SW pension into a drawdown product with another provider. They are the Worst company in the industry by a country mile!!

Others complained about different providers.

graeme.m51416
I had a very similar situation with Canada Life. We were transferring a pension to then set up an annuity pay out tfc etc and they just couldn't get it right. C/Life blaming the other company and they were blaming C/Life. The whole process took nearly 4 months to complete!!

However, some advisers have offered some helpful hints on how to get annuity business placed without resorting to phone calls.

For example, one reader said the solution would have been to download an annuity application form from the quotation portal and post it to Scottish Widows. 

They added: "The correct address would have been on the form and upon receipt, Scottish Widows would have emailed confirmation and a policy number and confirmed that they were requesting funds from the ceding provider."

amy.austin@ft.com