Upheld: service failure, unreasonable delays in pension access and transfer, system failures complaint against Phoenix Life Limited, trading as Standard Life
Financial Ombudsman decision DRN-6222765 of 2026-04-06T00:00:00+00:00. service failure, unreasonable delays in pension access and transfer, system failures complaint against Phoenix Life Limited, trading as Standard Life. Outcome: Upheld.
Decision detail
| Reference | DRN-6222765 |
|---|---|
| Decision date | 2026-04-06T00:00:00+00:00 |
| Firm | Phoenix Life Limited, trading as Standard Life |
| Product | pension |
| Claim type | service failure, unreasonable delays in pension access and transfer, system failures |
| Outcome | Upheld |
| Remedy | Standard Life must: (1) calculate what Mr G's pension value would have been on 19 November 2025 had the funds been transferred to Firm A on 3 October 2025; (2) compare this notional value to the actual transferred value of £187,976.51; (3) if a loss exists, offset it against any gains Mr G received from the valuation dates used by Standard Life; (4) pay any net loss into Mr G's pension at Firm A with clear calculations provided to Mr G. The £800 in compensation already paid (£300 + £500) is deemed appropriate and should not be offset. |
Summary
Mr G complained to Standard Life about delays in accessing his tax-free cash (TFC) from his Group Stakeholder Pension and subsequently transferring his pension to another provider (Firm A). His TFC request on 11 August 2025 was delayed until 11 September 2025 due to an incorrectly applied LTA Protection marker and system issues. The subsequent transfer to Firm A, requested on 27 September 2025, was not completed until 19 November 2025, despite the new Standard Life plan being established by 30 October 2025. Standard Life paid £800 in compensation (£300 for TFC delays, £500 for transfer delays) and argued Mr G suffered no financial loss because valuation dates used benefited him. The ombudsman upheld the complaint, finding the compensation fair but requiring Standard Life to calculate whether Mr G suffered investment performance losses from the delayed transfer, comparing what his funds would have been worth had they transferred on 3 October 2025 versus the actual 19 November 2025 transfer date.
The Ombudsman's reasoning
The ombudsman found that Standard Life failed to process Mr G's TFC withdrawal and pension transfer within reasonable timeframes. While Standard Life's payment of £300 for TFC delays and £500 for transfer delays were deemed fair compensation for inconvenience, the ombudsman determined that a financial loss calculation was necessary because Mr G's funds were delayed in reaching Firm A until 19 November 2025, when the transfer should reasonably have completed by 3 October 2025. Although Standard Life used valuation dates that benefited Mr G (resulting in higher TFC payments), this does not eliminate the need to assess potential investment performance losses from the delayed transfer. The ombudsman rejected Standard Life's argument that Mr G suffered no financial loss, finding instead that a proper comparison must be made between actual and notional fund values had the transfer occurred without avoidable delay.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Phoenix Life Limited, trading as Standard Life, all decisions | 7 | 14% |
Source
Read the original decision on the Financial Ombudsman Service website