“It is important to point out the suspensions will not affect any customer who wishes to retire.”
Scottish Widows said it has offered £150 to Mr Slater’s client to acknowledge its issue in not sending out letters promptly enough.
A similar issue arose earlier this year (April) with another provider after an adviser had problems trying to access a client’s fund due to the property fund suspension.
Shelley McCarthy, managing director and financial planner at Informed Choice, explained that because 5 per cent of a client’s pension portfolio was locked in a property fund, she was initially told by Royal London she was unable to withdraw any of the cash.
Although the pension provider later arrived at a solution — which involved transferring the other 95 per cent of the fund into another portfolio — Ms McCarthy described it as a “clunky and convoluted” nightmare.
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