Scottish Widows’ missing GAR link

I had a similar experience with Scottish Widows. Fortunately, I had been anticipating ou r client’s GAR deadline, but when I chased SW for the retirement paperwork I was told it had been sent direct to the client. Furthermore, as this was a corporate policy, the pack was sent to the trustees not the member, so the likelihood of it being passed to the member in time is questionable.

I eventually managed to get copies from SW and deal with the paperwork in time for the GAR deadline. I asked SW why we, as servicing agents, were not copied in as a matter of course, and was told it was not ‘standard procedure’. Why not? They were certainly happy to send us the scheme renewal paperwork every year to forward to the company. I put my concerns in a formal complaint letter and posed the question whether this was a ploy by the provider to get out of paying a very generous annuity rate. The response I had echoes that of Mr Kafton.

I have received several letters saying the investigation is taking ‘longer than anticipated’ and they ‘hope to be in a position to supply me with a response in the near future’. Time will tell what their reply will be.

The only way financial advisers can be sure a client does not miss out is to ensure they know and record which policies enjoy GARs. It is a standard question we ask every provider when we take over servicing of a plan, and we ensure a diary note is made at least six months before the deadline to give plenty of time to sort the paperwork.

Melanie Andrews

Assistant consultant, IFA South

At the time of going to press, Scottish Widows was unable to comment.