Upheld: Account administration errors complaint against EBS Pensions Limited
Financial Ombudsman decision DRN-6021231 of 2025-12-22T00:00:00+00:00. Account administration errors complaint against EBS Pensions Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6021231 |
|---|---|
| Decision date | 2025-12-22T00:00:00+00:00 |
| Firm | EBS Pensions Limited |
| Product | Pension |
| Claim type | Account administration errors |
| Outcome | Upheld |
| Remedy | Embark must: (1) urgently provide a substantive explanation of what happened and the correct position for both SIPPs with supporting evidence including Land Registry records; (2) set out calculations of any financial losses in simple terms; (3) put Mr M and Mrs W back into the position they should have been in but for errors, with 8% per annum simple interest to settlement date; (4) pay compensation into the pension plan if possible (accounting for charges and tax relief) or as a lump sum with 15% notional tax reduction if not; (5) pay £500 each in total compensation to Mr M and Mrs W for distress and inconvenience (including any amounts already paid). |
Summary
Mr M and Mrs W complained that Embark Pensions maladministered their SIPPs by incorrectly allocating ownership of two commercial properties between them. Following the takeover of administration from Liberty, Embark provided conflicting ownership split percentages (50:50, 65:35, and 57.71:42.29) without substantive explanation over nearly four years despite repeated requests from the complainants' financial adviser. The uncertainty prevented the complainants from accessing tax-free cash and undertaking retirement planning. Although Embark accepted the ombudsman's provisional decision, it failed to implement the required actions. The ombudsman upheld the complaint, directing Embark to provide urgent clarification with supporting evidence, rectify any financial losses with 8% interest, and pay £500 compensation to each complainant.
The Ombudsman's reasoning
The ombudsman found that Embark failed in its primary responsibility to maintain adequate records and ensure compliance with legislative and HMRC requirements. Despite nearly four years of enquiries, Embark provided conflicting information about property ownership splits without substantive explanation or supporting evidence. The uncertainty prevented Mr M and Mrs W from managing their pensions as intended and caused significant distress over an extended period. Embark's acceptance of the provisional decision followed by failure to implement it demonstrated continued poor service. The ombudsman concluded that fair compensation and urgent clarification with supporting documentation was necessary.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| EBS Pensions Limited, all decisions | 15 | 40% |
| Account administration errors, all decisions | 25,844 | 25% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website