Not upheld: Investment mis-selling complaint against The Ancient Order of Foresters Friendly Society Limited

Decision detail

Summary

Mr V complained that a with profits endowment policy taken out in October 1998 was mis-sold and that he received an incorrect maturity payment in October 2023 of £3,983.98, which was lower than the June 2022 surrender value. Foresters stated the policy was sold on an execution only basis without advice and that the maturity payment was correct. The ombudsman found no evidence of mis-selling and confirmed the maturity value was correctly calculated, with the decrease from 2022 to 2023 attributable to market conditions affecting the underlying investment. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities standard given incomplete evidence from a 1998 sale. Foresters' assertion that it provided no advice and Mr V chose the premium and sum assured was accepted as credible. The surrender value in the 2022 statement was explicitly stated as non-guaranteed and subject to change. The maturity value was correctly calculated according to policy terms, and the decrease from 2022 to 2023 reflected legitimate market fluctuations affecting the underlying investment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website