• Warning comes as Phoenix runs overseas advertising campaign to raise awareness and encourage savers to take action
• People may find they’re unable to receive payments from pension providers into their bank or building society account until they have a new account set up

Phoenix Group, the UK’s largest long-term savings and retirement business, is urging all customers based in the European Economic Area (EEA) to check their banking arrangements to ensure they can continue to send or receive payments.

Many banks and building societies in the UK closed their accounts to customers resident in the EEA at the end of the Brexit transition period on 31 December 2020 when existing “passporting” arrangements came to an end.

Phoenix wrote to its EEA customers warning them of the issue but had limited response. The company then started an advertising campaign across European titles to flag the issue. The letters and adverts encouraged customers to be aware if their UK account was closing and to make alternative banking arrangements.

Whilst the adverts and letters saw some customers take action, there are still a number of customers who have not yet set up new banking arrangements are now at risk of being unable to receive any payments into their account from pension providers like Phoenix. In particular, those receiving regular annuity payments are advised to take prompt action to make sure the income they may be relying on is able to reach them easily.

Andy Moss, Phoenix Life CEO and Group Director, Heritage Business, said: “Many people are reliant on their private pension income and we want to help them ensure they continue to receive this with no interruption. We believe that thousands of our customers could be at risk of their income being interrupted due to these changes and we are urging them to make new banking arrangements immediately "

UK expats who are resident in the EEA may have chosen to have a UK account to receive a pension, salary or other income payments in sterling, as it can be convenient for trips home, or to help avoid poor exchange rates for converting pounds into local currency.

Phoenix has written letters to all those it believes could be affected to explain how this could impact them and what they need to do. If their bank has informed them they are closing their UK accounts they should urgently review the banking arrangements so that there’s no disruption to the payment services it provides. In addition, the company has provided information on its websites and run an advertising campaign to highlight this industry-wide issue to consumers in Europe.

Phoenix is also reminding its customers that moving from a UK bank account to an international account could change their tax status in the country they are a resident and recommends seeking the appropriate guidance and advice before doing so.

Phoenix will issue a cheque payment to customers rather than make a payment electronically if revised details are not provided in these circumstances. The payments will not be lost but may be more difficult to process overseas. If a customer’s UK bank account will continue to accept payments from the EEA, they do not need to take any further action.

-Ends-

Enquiries

Dan White
PR Manager
Phoenix Group
07971952921
Daniel.white@thephoenixgroup.com

Notes to editors

About Phoenix Group

Phoenix has become the UK’s largest long-term savings and retirement business following the completion of the ReAssure acquisition and is also the largest consolidator of closed life and pension funds in Europe.

Phoenix has businesses in the UK, Germany and Ireland, split across three key business segments: UK Heritage, UK Open and Europe.

The Group specialises in the acquisition and management of closed life insurance and pension funds (its Heritage business). Phoenix is a leader in the safe and efficient management of UK Heritage business. The UK Heritage segment comprises products that are no longer actively marketed to customers and has been built through the consolidation of over 100 legacy insurance brands.

In addition, Phoenix’s UK Open business manufactures and underwrites long-term savings and retirement products to support people saving for their future. These products are actively marketed to new and existing customers, primarily under the Standard Life brand. This segment is underpinned by a strategic partnership with Standard Life Aberdeen following the Phoenix Group’s acquisition of Standard Life Assurance Limited in 2018. Standard Life Assurance is a long-established expert in workplace pensions, personal pensions, long term savings and retirement solutions, and its customers and clients include individual savers and some of the largest employers in the UK, as well as professional advisers. The UK Open business includes a growing BPA business. Phoenix Group also has a market leading brand - SunLife - which sells a range of financial products specifically for the over 50s market.

The European business spans a range of both Open and Heritage products across three segments: Ireland, Germany and the International Bond in the UK. Our focus is on protecting our existing assets, optimising sales and driving efficiencies, which enables us to maximise value in these businesses and provides a platform for potential future consolidation in Europe.

Phoenix Group is a member of the FTSE 100 index, and has circa 14 million policies and over £300 billion of assets under administration.