Failed firm tops Fos complaints with highest uphold rate

Failed pension advice firm Portal Financial Services has the highest uphold rate with the Financial Ombudsman Service, according to the latest complaints data.

The data, which covers July to December 2022, found that Portal had an uphold rate of 90 per cent overall, all of which was for decumulation and pensions.

Last week, Portal Financial Services LLP was declared in default with nearly 300 claims of poor advice against it.

The firm, formerly called Portafina LLP, entered compulsory liquidation on January 18 this year and the Financial Services Compensation Scheme (FSCS) declared the company as failed earlier this month.

Portal was followed in the data by Interactive Investor Services Limited which had the second highest uphold rate for decumulation and pensions at 53 per cent.

A spokesperson for Interactive Investor said: “Fos outcomes have evolved and now have a much greater emphasis on the overall customer journey, rather than the underlying issue in question. 

“This is welcome, but it does lead to higher upheld rates when this approach is applied retrospectively to historic cases from years before.”

The spokesperson said Interactive Investor has made “positive changes” to how it investigates, responds and reaches outcomes in the complaint handling processes. 

“So, while broadly in line with industry average uphold rates (37 per cent versus 34 per cent for the wider industry), we are very much focused on improving our scores as we focus on customer experience, and pride ourselves on our service.”

The Fos received a total of 79,921 new complaints in this period, compared to 72,978 in the first six months of 2022 (H1 2022). 

It upheld 34 per cent of complaints in the consumers’ favour compared to 37 per cent in H1 2022.

For decumulation life and pension complaints, there were a total of 3,842 new complaints compared to 4,193 in H1 2022.

Aviva had a total of 1,585 complaints, of which 504 were linked to its life and pensions business. From this, 42 accounted for investments while 330 were for decumulation, life and pensions. 

An Aviva spokesperson said: “Aviva takes complaints about its customer service very seriously and we are committed to providing an excellent service for all our customers. 

“Where we fail to meet customers’ expectations, our first priority is to resolve the matter as quickly as possible and to act on the feedback we receive.

“Although we aim for no complaints, the ones we get represent just 1.43 per 1,000 life policies in the UK.”

In the second half of 2021, Aviva was subject to a total 1,505 complaints.