Upheld: administrative delay and failure to process transaction; inadequate record-keeping complaint against EBS Pensions Limited
Financial Ombudsman decision DRN-6262368 of 2026-04-17T00:00:00+00:00. administrative delay and failure to process transaction; inadequate record-keeping complaint against EBS Pensions Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6262368 |
|---|---|
| Decision date | 2026-04-17T00:00:00+00:00 |
| Firm | EBS Pensions Limited |
| Product | pension |
| Claim type | administrative delay and failure to process transaction; inadequate record-keeping |
| Outcome | Upheld |
| Remedy | EBS Pensions Limited must: (1) Calculate the notional value of the investment as at the October 2023 dealing date and determine what that amount would have grown to if invested in the Polaris 4 fund from October 2023 to the date of settlement; (2) Compare this notional value with the current value of the suspended investment; (3) Pay any shortfall into Mr W's SIPP as a lump sum, accounting for any charges and unused tax relief; (4) If payment to the SIPP is not possible, pay directly to Mr W with a notional 30% deduction for income tax at his marginal rate (40%); (5) If the suspended investment is attributed zero value, take ownership of it or require Mr W to provide an undertaking to pay any future proceeds to EBS Pensions; (6) Pay £500 compensation for distress; (7) Make payment within 28 days, with 8% simple interest per annum if delayed. |
Summary
Mr W requested surrender of a SIPP investment on 4 September 2023 with the intention to reinvest in the St James's Place Polaris 4 fund. EBS Pensions caused multiple delays in processing the request, including failing to maintain adequate records and failing to respond promptly to Time Investments' request for clarification on the correct investment designation. Although Time Investments clarified the correct designation on 18 October 2023, EBS Pensions did not contact Mr W's IFA for confirmation until 7 November 2023, causing the transaction to miss the October 2023 dealing date. The investment subsequently became suspended on 13 November 2023, preventing disinvestment and leaving Mr W's funds tied up. The ombudsman upheld the complaint and directed EBS Pensions to calculate compensation based on the notional value had the sale proceeded in October 2023 with reinvestment in the Polaris 4 fund, plus £500 for distress.
The Ombudsman's reasoning
The ombudsman found that EBS Pensions had avoidable delays in processing the surrender request. Time Investments clearly identified the correct investment designation on 18 October 2023, but EBS Pensions did not contact Mr W's IFA for confirmation until 7 November 2023, by which time the October dealing date had passed. Had EBS Pensions responded to Time Investments' initial request on 4 October 2023 within three working days (by 8 October 2023), or contacted Mr W's IFA at that stage, the investment would have been disinvested at the October 2023 dealing date before the fund suspension on 13 November 2023. The ombudsman rejected EBS Pensions' proposed resolution as it left Mr W bearing ongoing risk and uncertainty. Instead, the appropriate remedy is to place Mr W in the position he would have been in had the sale proceeded in October 2023, with the proceeds invested in the Polaris 4 fund as intended.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| EBS Pensions Limited, all decisions | 15 | 40% |
Source
Read the original decision on the Financial Ombudsman Service website