Not upheld: withdrawal administration and alleged failure to clarify instructions complaint against SCOTTISH WIDOWS LIMITED trading as Halifax Financial Services (HFS)

Decision detail

Summary

Mr N complained to HFS about a withdrawal from his investment that resulted in a chargeable event and tax liability. He had submitted a withdrawal form with an accompanying cover letter containing his instructions, and had also spoken with HFS by telephone. HFS processed the withdrawal according to the options selected on the signed form, which carried explicit warnings about potential tax consequences. The ombudsman found that HFS provided an execution-only service, had recommended independent financial advice both verbally and in writing, and acted fairly in relying on the clear instructions in the signed form rather than the cover letter. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that HFS provided an execution-only service without giving advice, and that they made Mr N aware of the importance of seeking independent advice both verbally and in writing. The signed withdrawal form provided clear instructions to HFS on how to process the transaction, and the cover letter did not override these valid instructions. The form option selected carried explicit warnings about potential tax consequences. Therefore, HFS acted fairly in relying on the form instructions and processing the withdrawal accordingly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website