Scottish Widows  

Gated fund stymies Scottish Widows transfer

“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.

Previous issues

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.

amy.austin@ft.com

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