Not upheld: Other regulated complaint complaint against Mattioli Woods Limited

Decision detail

Summary

Ms B and Mr B complained that Mattioli Woods Limited unfairly distributed their late father's SIPP death benefits by awarding 50% to his cohabiting partner and only 25% each to the complainants, contrary to an Expression of Wish form completed in 2013 naming them as joint beneficiaries. The SIPP holder had been living with his partner since 2016 and they shared financial responsibilities. MW conducted investigations and determined the partner was a financial dependent, while the adult children were not. The ombudsman found that MW properly exercised its discretion under the scheme rules by investigating the SIPP holder's changed circumstances since the 2013 EOW and reasonably concluding the partner was dependent. The ombudsman declined to award compensation for loss of expectation because the complainants had failed to disclose the partner's existence on the death notification form, which could have prevented the initial incorrect indication that they would be joint beneficiaries.

The Ombudsman's reasoning

The ombudsman found that MW correctly exercised its discretion to distribute death benefits by conducting a thorough investigation into the SIPP holder's circumstances at the time of death. The EOW form, completed in 2013, was not binding on the trustee and was over 10 years old. The SIPP holder's circumstances had materially changed since the EOW was completed - he had been living with his partner since 2016 and they shared financial responsibilities, whereas his adult children were not dependent on him. MW properly followed its stated decision-making process, which requires investigation into whether circumstances have changed since the EOW was completed. The ombudsman was satisfied that MW had all relevant information before making its final distribution decision, including information provided by Ms B and Mr B in April 2024. The ombudsman declined to award loss of expectation compensation because the situation could have been avoided if Ms B and Mr B had correctly completed the death notification form by disclosing their father's cohabiting partner.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website