Not upheld: Pension transfer advice complaint against Scottish Widows Administration Services Limited
Financial Ombudsman decision DRN-6015215 of 2026-01-15T00:00:00+00:00. Pension transfer advice complaint against Scottish Widows Administration Services Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6015215 |
|---|---|
| Decision date | 2026-01-15T00:00:00+00:00 |
| Firm | Scottish Widows Administration Services Limited |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Not upheld |
| Remedy | £400 compensation already paid by SWAS for distress, inconvenience, and transfer delays. No additional remedy ordered. |
Summary
Mr R complained that SWAS failed to invest his pension transfers in line with his request, instead initially investing them in the default fund which he believed exposed him to excessive risk. SWAS caused communication delays of ten calendar days in providing transfer forms and provided unclear information suggesting he could change the default fund. However, the ombudsman found that the plan's terms and conditions explicitly required transfers for former employees to be invested in the default fund first, with the option to switch afterwards. The ombudsman determined SWAS correctly applied these terms, which were fair and agreed with Mr R's former employer. While acknowledging the communication failures and delays, the ombudsman found the £400 compensation already paid was appropriate, particularly as a financial loss assessment showed the delays caused no financial detriment.
The Ombudsman's reasoning
The ombudsman found that while SWAS's communications were unclear and caused delays, the firm correctly applied the plan's terms and conditions. The plan explicitly required that transfers for former employees who are not actively contributing must be invested in the default fund first, with the option to switch afterwards. This requirement was clearly stated in both the plan terms and the Cash Transfer In form. The ombudsman determined the terms were fair as they were agreed between SWAS and Mr R's former employer, and SWAS is entitled to operate the plan according to its terms. Although Mr R's circumstances meant the default fund didn't match his attitude to risk, the ombudsman could not require SWAS to deviate from the contractual terms. The £400 compensation for the ten-day delay and unclear communications was deemed appropriate, particularly as the loss assessment showed no financial detriment resulted from the delay.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Scottish Widows Administration Services Limited, all decisions | 8 | 12% |
| Pension transfer advice, all decisions | 7,599 | 54% |
| Pension, all decisions | 15,602 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website