Not upheld: service transition and account handover complaint against Lloyds Bank PLC

Decision detail

Summary

Mr C complained that Lloyds Bank failed to ensure a proper handover of his financial affairs when he transferred his SIPP and ISA to Schroders Personal Wealth (SPW) in 2021, following his adviser's transition to SPW. In 2024, when Mr C needed funds for a property purchase, delays in his SIPP withdrawal and subsequent delays in returning funds to his ISA caused him to be out of the markets for several months, resulting in financial loss. Mr C claimed he was misled about receiving the same level of service and that Lloyds should have ensured the transition was handled correctly. The ombudsman rejected the complaint, finding that SPW, as a discrete firm, held responsibility for providing complete information about services to Mr C when he became their client, and that the losses claimed relate to SPW's actions rather than Lloyds' conduct.

The Ombudsman's reasoning

The ombudsman determined that SPW is a discrete firm with its own distinct responsibilities separate from Lloyds, despite the close connection between them. While some discussions may have occurred while the adviser was still at Lloyds, it was SPW's responsibility to provide Mr C with complete and non-misleading information about services when he became their client in 2021. The ombudsman considered it would not be fair or reasonable to hold Lloyds responsible for confusion caused at that point. The losses claimed by Mr C relate to SPW's actions in 2023/2024 regarding pension legislative changes and delays in fund return, which are addressed in a separate complaint against SPW.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website