Not upheld: Pension transfer advice complaint against Prudential Pensions Limited

Decision detail

Summary

Mr T complained about delays in Prudential transferring his pension funds and the lack of explanation for how the cash sum was calculated. The transfer request was received 12 May 2023 but not completed until 9 November 2023, a delay of approximately six months. Prudential calculated Mr T's loss at £2,151.20 and paid £550 compensation for distress and inconvenience. Although Prudential initially used the November 2023 transfer value instead of the May 2023 value in its calculation, this actually placed Mr T in a better financial position. The ombudsman found that Prudential provided adequate explanations for the cash value calculations and that the compensation was appropriate, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that while Prudential caused delays in the transfer, it had identified the delay and offered redress in line with FOS expectations. Although Prudential initially used the wrong transfer value in its loss calculation, the higher November 2023 value actually placed Mr T in a better position than the correct May 2023 value would have. Prudential provided adequate explanations for the cash value calculations and the reasons for changes in value over time, including the role of interest rates. The £550 compensation for distress and inconvenience was appropriate given the circumstances. Additional complaints about misleading advice and information regarding the need for financial advice had not yet been formally considered by Prudential and therefore could not be addressed in this decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website