Integration of a new back office system at Friends Life has created backlogs of up to five weeks in processing requests that could potentially affect up to half a million clients.
Suffolk IFA Clive Farrell told FTAdviser he requested a top-up illustration for an Axa investment bond on 24 February, which he said would usually take around 24 hours.
However, he has been told by the company that delays could take up to five weeks due to the introduction of a new back-office system.
A spokesperson for Friends Life said that the backlog affects general enquiries, policy amendments and valuations among other things.
Although 500,000 clients - 10 per cent of Friends Life’s 5m-strong client base - have investments that could be affected by the delays, the spokesperson specified that only 9,000 customers have actually been affected to date.
The spokesperson added that twenty-five days is a “worst-case scenario” and said it has brought in additional staff and hopes to clear the backlog by early April.
“We have been having a long programme of bringing those systems together. On this particular issue, this particular part of the service, [integration] resulted in a backlog of work.
“Twenty-five days is a worst-case scenario. We have recruited a whole lot of extra people and they are doing overtime. We anticipate by early April we will be back to our normal service.”
Mr Farrell said: “I would suggest that a company like Friends Life shouldn’t go live with a new system until it has been tested and proven.”
Earlier this month (4 March) another adviser criticised Hornbuckle Mitchell for delays of up to 30 working days owing to a backlog of property transactions.
Robin Smith, operations director at Friends Life, said: “Upgrades we’ve made to some of our back office systems have caused a delay in processing for circa 10 per cent of our customers.
“In the long term the changes we’ve implemented will improve the service we offer. In the short term we’re working hard to get back on track.
“We’ve recruited extra team members, transferred colleagues from other areas and increased the number of hours colleagues are working through overtime. We are sorry for any inconvenience caused to our customers as a result of the delays.”
Friends Life this morning (18 March) reported a 59 per cent rise in profits before tax for 2013, despite intermediary business Sesame Bankhall posting a £19m loss. The UK arm posted a £40m profit, up from a loss of £32m in 2012.
In 2010 Friends Life parent Resolution acquired the Axa UK Life business, which comprises Axa’s protection, corporate benefits and annuities books.
