Not upheld: Investment mis-selling complaint against Scottish Widows Administration Services Limited

Decision detail

Summary

Mr C complained to Scottish Widows about the performance of his employer pension with a lifestyling strategy, claiming he suffered significant losses and was not properly informed about his investment position. He raised four separate complaints between May and December 2025 alleging poor fund management, inadequate communication, and inability to make investment changes. Scottish Widows responded that it acted only as administrator, not investment manager, and that the lifestyle strategy was chosen by Mr C's employer. The ombudsman found that SW properly issued annual benefit statements to the correct address, maintained an accessible online portal, and provided clear information about the investment strategy and Mr C's ability to make changes. Although some communication issues occurred, these did not constitute failures. The ombudsman concluded Mr C was in an informed position to assess his investments and make changes if desired, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Scottish Widows fulfilled its role as administrator by issuing annual benefit statements to the correct address and maintaining an accessible online portal. The statements clearly explained the lifestyle strategy, fund performance, and Mr C's ability to make changes. Although some emails went to Mr C's junk folder and there was one addressing error on an email response, these did not constitute failures as SW had sent correspondence to the correct address and Mr C had demonstrated portal access. The ombudsman rejected Mr C's argument that SW should have followed up to confirm receipt and understanding, finding this would be administratively burdensome. The change in investment strategy did not indicate fault with the previous approach but rather reflected market conditions. The ombudsman concluded Mr C was in an informed position to assess whether the investment strategy remained suitable and could have made changes if he wished.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website