Upheld: Pension transfer advice complaint against EBS Pensions Limited
Financial Ombudsman decision DRN-5725479 of 2025-07-30T00:00:00+00:00. Pension transfer advice complaint against EBS Pensions Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5725479 |
|---|---|
| Decision date | 2025-07-30T00:00:00+00:00 |
| Firm | EBS Pensions Limited |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Upheld |
| Remedy | 1. Embark must conduct a financial loss assessment comparing: (a) notional pension value if funds had been disinvested and settled by 21 June 2023 and transfer completed by 3 July 2023 with same subsequent investment (Value A); (b) current pension value (Value B). If Value A exceeds Value B, compensation should be paid into the pension if possible, allowing for charges and tax relief. If payment into pension is not possible, compensation should be paid directly to Mr N with a notional 15% reduction for income tax (or 20% if no tax-free entitlement remains). Payment must be made within 28 days of Mr N's acceptance, with 8% simple interest if paid later. 2. Embark must pay £125 total compensation for distress and inconvenience if not already paid. |
Summary
Mr N complained that Embark Pensions unreasonably delayed the transfer of his SIPP to another provider, resulting in financial loss due to market movements. Embark received the transfer request on 6 June 2023 but did not send the disinvestment instruction until 6 July 2023, with the transfer completing on 26 July 2023. Embark initially acknowledged responsibility for delays but later changed its position, claiming compliance with its 10 working day internal timeframes. The ombudsman found that Embark should have sent the disinvestment instruction by 13 June 2023 (5 working days after receipt), applying a reasonable standard based on industry guidance, Origo system expectations, and Embark's own revised timeframes. The ombudsman upheld the complaint and required Embark to conduct a financial loss assessment comparing the notional pension value if the transfer had completed by 3 July 2023 with the current value, and pay compensation accordingly plus £125 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Embark caused unreasonable delays by not sending the disinvestment instruction until 6 July 2023 when it should have been sent by 13 June 2023 (5 working days after receipt). Although Embark's internal timeframes were 10 working days plus 24-hour validation, the ombudsman considered this unreasonable given: (1) the Origo system's expected completion date of 17 June 2023; (2) industry guidance indicating 10 working days overall; (3) Origo data showing average completion of just under 10 calendar days; and (4) Embark's own revised timeframes of 5 working days. The ombudsman rejected Embark's argument that it needed 13 days to validate IFA details, as this could have been done via FCA website. The ombudsman applied a 5 working day standard per step, resulting in an expected completion date of 3 July 2023. The financial loss should be calculated based on the notional value if funds had settled by 21 June 2023 and transfer completed by 3 July 2023.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| EBS Pensions Limited, all decisions | 15 | 40% |
| Pension transfer advice, all decisions | 7,542 | 54% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website