Not upheld: service delays, unclear communication, and financial loss from market movement complaint against Legal and General Assurance Society Limited
Financial Ombudsman decision DRN-6255376 of 2026-04-13T00:00:00+00:00. service delays, unclear communication, and financial loss from market movement complaint against Legal and General Assurance Society Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6255376 |
|---|---|
| Decision date | 2026-04-13T00:00:00+00:00 |
| Firm | Legal and General Assurance Society Limited |
| Product | annuity |
| Claim type | service delays, unclear communication, and financial loss from market movement |
| Outcome | Not upheld |
| Remedy | None. The complaint was not upheld. |
Summary
Mr J complained that L&G caused avoidable delays in setting up his annuities and provided confusing literature, resulting in a financial loss of £11,494 when his pension fund values decreased between the quote date (29 January 2025) and the transfer date (16 April 2025). Mr J claimed the call handler had a strong accent making communication difficult, that he had requested the annuities start 'as soon as possible' in the new tax year, and that the quote documentation was confusing because it showed a start date after the guarantee period. The ombudsman reviewed the call recording and found that the call handler clearly explained L&G's role and that Mr J himself selected 10 April 2025 as the fund request date after being offered an 'as soon as possible' option. The ombudsman concluded that L&G's quotes clearly stated the start date was provisional and that the guarantee would expire if funds were not received by the guarantee date, and that the fund value decrease was due to market movement, not L&G's actions. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found that the call recording clearly demonstrated the call handler explained that L&G only controlled the date it requested funds, not the annuity start date, and that Mr J himself selected 10 April 2025 after being offered an 'as soon as possible' alternative. The quotes clearly stated the start date was provisional and subject to change, and explained that the guarantee would expire if funds were not received by 29 March 2025. The fund value decrease was due to market movement between the quote date (29 January 2025) and the disinvestment date (10 April 2025), which was an inevitable consequence of Mr J's choice to defer the fund request. L&G was not required to provide investment advice and acted as expected in processing the application according to Mr J's instructions.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Legal and General Assurance Society Limited, all decisions | 1,099 | 18% |
Source
Read the original decision on the Financial Ombudsman Service website