Not upheld: policy mismanagement, poor performance, charges, customer service and communication procedures complaint against Phoenix Life Limited

Decision detail

Summary

Mrs B complained that her whole of life assurance policy taken out in 1983 had been mismanaged due to poor performance and charges, and that Phoenix Life had not properly communicated with her representative Mrs A due to anxiety and memory loss. Phoenix Life had added Mrs A as a third-party mandate but would not send written policy information directly to her. The ombudsman found the policy was suitable at sale, charges were reasonable and industry standard, Phoenix Life was not responsible for ongoing advice, and the third-party mandate procedures were fair. The ombudsman upheld Phoenix Life's £100 compensation for service delays and declined to require any further action.

The Ombudsman's reasoning

The ombudsman found that Phoenix Life was not responsible for providing ongoing advice to Mrs B, only policy information. The policy was suitable at the time of sale given Mrs B's circumstances. With-profits fund performance and bonus decisions are commercial matters for the firm and regulator, not the ombudsman. Charges were reasonable and in line with industry practice. Phoenix Life made reasonable efforts to inform customers of adjustment options. The third-party mandate procedures, while not meeting all of Mrs B's wishes, were fair and reasonable for data protection and security purposes. The £100 compensation already offered was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website