Insurance giant Aviva fined £8.2m for breaches

The Financial Conduct Authority (FCA) said Aviva Pension Trustees UK and Aviva Wrap UK did not have the right controls in place after outsourcing the administration of its custody assets.

Mark Steward, the FCA’s director of enforcement and market oversight, said: “Aviva outsourced the administration of client money and external reconciliations in relation to custody assets, but failed to ensure that it had adequate controls and oversight arrangements to effectively control these outsourced activities.”

It said the insurance giant failed to put in the place the right controls over third party administrators (TPAs) and did not “sufficiently challenge” the performance and resources of the TPAs. Aviva was handed a 30 per cent discount on its fine after reaching an early settlement with the FCA, meaning it will pay £8,246,800 instead of £11,781,262.

Aviva said it had tackled the problems with its UK life adviser platform and customers had not suffered any financial loss. It added that it had strengthened governance and controls.

Andy Briggs, chief executive of Aviva UK Life, apologised and said the insurer had accepted the FCA’s findings.

“This should not have happened and we are sorry.”