Pension providers are failing to meet advisers expectations of service for administration of existing business, according to Defaqto.

A survey by the firm of 500 advisers asked them to rate 40 aspects of service across eight categories.

The categories were provider perception, staff perception, product and proposition, new business servicing, existing business servicing, retirement settlement servicing, online servicing and value added services.

In the category of ‘existing business servicing’ providers only met expectations in one of the four aspects.

Maintaining and effectively meeting the needs of existing clients is likely to be important in the run-up to the RDR as advisers review their business models.

However, providers met expectations in all six aspects in the ‘new business servicing’ category.

This indicates providers should try to focus on their existing clients as much as they focus on new clients.

Andy Leggett, Defaqto’s insight analyst for wealth management, said: “Our 2011 survey has seen a vast improvement in providers’ servicing of new business, with advisers’ expectation being met across the board.

“However, the management of existing business fared less well, with providers’ performance meeting advisers’ expectations in just one aspect of service in this area.

“With advisers particularly looking to add value in areas such as pensions, and given the importance of long-term client relationships, it is inevitable that advisers will expect high standards in this area.”

The full review is available to read at www.defaqto.com/adviser/ifa/guides