Not upheld: service failure, administrative errors, inadequate compensation complaint against Scottish Equitable Plc trading as AEGON

Decision detail

Summary

Mr M complained that AEGON failed to adequately compensate him for distress and inconvenience caused when changing his IFA. AEGON made several errors including processing his wife's LOA despite it being sent to an incorrect email address, failing to process his own LOA, providing incorrect information about receipt of the LOA, and not returning requested manager call-backs. AEGON upheld the complaint and offered £150 compensation, which Mr M felt was insufficient. The ombudsman determined that £150 was appropriate compensation under FOS guidelines, as the errors, while frustrating, caused no financial loss and were resolved within approximately five weeks, and therefore did not uphold Mr M's request for increased compensation.

The Ombudsman's reasoning

The ombudsman noted that AEGON had already acknowledged and upheld the complaint, so the issue was whether the compensation was appropriate rather than whether errors occurred. The ombudsman applied FOS compensation guidelines which describe £100-£300 awards as appropriate for repeated small errors or larger single mistakes requiring reasonable effort to sort out, typically lasting a few days or weeks. The ombudsman found that although Mr M experienced frustration and inconvenience, the overall duration from the initial LOA submission to resolution was relatively short (approximately 5 weeks from 30 June to 8 September 2025), and no financial loss was suffered. Therefore, £150 fell within the appropriate range under the guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website