Not upheld: policy surrender - identity verification requirements complaint against Liverpool Victoria Financial Services Limited

Decision detail

Summary

Mr M complained that LV refused to surrender his whole of life policies without photo ID, despite him providing alternative documentation including a statutory declaration and tax information. LV maintained that photo ID was a mandatory requirement to verify identity and prevent fraud, in line with regulatory requirements. The ombudsman found that LV had clearly communicated its requirements, that the requests were reasonable and necessary for fraud prevention and regulatory compliance, and that the ombudsman cannot interfere with a firm's operational procedures. The complaint was not upheld, and LV was not required to take any action.

The Ombudsman's reasoning

The ombudsman determined that LV's request for photo ID is a reasonable and mandatory requirement to verify identity and protect against fraud and identity theft, in line with regulatory requirements. The ombudsman noted that while she cannot interfere with a firm's operational procedures (that is the role of the FCA), she can assess whether the firm has acted fairly. LV clearly communicated its requirements throughout and the statutory declaration was not an acceptable alternative form of verification. The address error was likely a minor typo and did not impact Mr M's ability to surrender the policies, as the delay was due to Mr M not providing the required photo ID.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website