It has been alleged in a leading industry newspaper that pension contributions have sat unallocated at NPI for up to two years because of a problem by insufficient staff. The provider has now missed two Financial Services Authority deadlines to resolve the issue.
A large number of policyholders are believed to be affected and until the matter is resolved, the company is unable to transfer, close, or 'do anything' with the affected policies. All policyholders affected have been notified.
It is claimed that around six months ago, the FSA set a date of July 31st for the provider to rectify the situation after an initial investigation. But that deadline passed with funds still outstanding. A second deadline of August 31st has also lapsed.
Our view
NPI used to be a major pensions provider until it was so ungraciously dumped by its parent company.
We trust the situation, if it is the case, will be suitably handled by the regulator.