Not upheld: Investment mis-selling complaint against Scottish Widows Administration Services Limited

Decision detail

Summary

Ms H complained that Scottish Widows failed to treat her fairly when she requested information about altering her pension investments in 2021 to address concerns about value erosion. Ms H alleged that Scottish Widows told her cash investments were unavailable, though she later moved her pension into cash in 2023. Scottish Widows offered £300 without admission of liability. The ombudsman reviewed call recordings from 2021 and found that Scottish Widows did not tell Ms H that cash investments were unavailable and acted reasonably by not recommending specific investments or highlighting individual options, which could have been construed as advice. The ombudsman concluded Scottish Widows met its responsibilities as a pension administrator by providing information about available investments and directing Ms H to seek independent financial advice.

The Ombudsman's reasoning

The ombudsman found that Scottish Widows acted reasonably by not recommending specific investments, as doing so could have been construed as advice. While the firm did not explicitly state that cash investments were available, providing such specific information without a direct question could reasonably be considered advice. The low-risk pension investments Ms H sought were contained within the information Scottish Widows provided. Scottish Widows appropriately directed Ms H to seek independent financial advice if she needed further support. The firm did not tell Ms H that cash investments were unavailable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website