Back
Abbey rejects IFA request ‘due to red tape’
16 September 2010
An IFA trying to provide pensions advice for his client claims he is shut out by Abbey Life because of the provider’s strict interpretation of the anti-money laundering rules. Francis Klonowski, fellow of the Institute of Financial Planners and principal of Leeds-based financial consultants Klonowski & Co, said that Abbey Life has refused to accept his Florida-based client’s letter of authority. Mr Klonowski said: “This is becoming a problem when expatriate clients want to encash their retirement benefits and work out their pensions income. Many companies need to have specific ID verification checks before they can release money, which is understandable, but in this case, all the providers with whom my client and his wife had small pension savings have provided me with the necessary details – except for Abbey Life.” The client and his wife held seven different pension plans – and within this was an old Target Life plan, bought in 1986, which belongs to Abbey Life (part of Deutsche Bank). However, Abbey Life stated that, as the client had moved to Florida and not informed Abbey Life of his change of address at the time, they could not accept Mr Klonowski’s authority. The client wrote to Abbey Life with proof of identification, but this was rejected as it was not proof enough. Mr Klonowski then wrote to Abbey Life asking what ID was needed and what proof he should get his client to send them. He said: “Abbey Life said that it would contact the client directly. And, because the company won’t keep in touch with me, I cannot advise my client either on his pension benefits or on what information he needs to provide in order to expedite his financial advice. “I have been caught between the proverbial rock and the hard place of the ID requirements of AML and the Data Protection Act – meantime the client needs his money and this one missing piece of the jigsaw cannot be provided because Abbey Life is so wrapped up in red tape.” A Deutsche Bank spokesman declined to comment while the case is being investigated. Published by FTAdviser
