Closed-book consolidator Phoenix has said ‘under 100’ of its customers have been hit by a systems upgrade which has seen policyholders not receiving their pension income.
In March AXA Wealth, which was acquired by Phoenix in 2016 and later renamed Phoenix Wealth, moved to a new outsourced administration system run by Diligentia with FNZ providing the back-office technology.
As New Model Adviser® reported previously, Phoenix said this back-office switch would cause ‘planned downtime’ and warned IFAs of expected ‘teething problems’ for the 45,000 Phoenix Wealth customers.
Now the Financial Times has reported customers have been hit by the systems upgrade with some not receiving their pension income in April and May.
Louis-Rhys Harvey, managing director of advice firm Aventur Wealth, told the Financial Times: ‘Unfortunately our clients taking pension income have faced great difficulty this past month with payments not being made to them.’
A spokesman for Phoenix said the issues had affected less than 100 of its customers and that no customer would suffer ‘financial detriment’.
‘The majority of payments have been made to customers as expected without issue, but a small number of customers have not received their payment when they were expecting [them],’ Phoenix told the Financial Times.
‘We are upgrading our systems. Ultimately we expect policyholders (and their advisers) to benefit from an enhanced technical solution that in the longer term will offer greater functionality.’