Not upheld: alleged breach of COBS 4 - misleading communication regarding post-sales underwriting process complaint against Phoenix Life Limited trading as Standard Life

Decision detail

Summary

Mr C complained that Standard Life's letter informing him of a post-sales nurse home visit was badly worded and breached COBS 4 because it only mentioned the possibility of annuity reduction, not increase, despite Standard Life's underwriters confirming during telephone calls that annuities could go up or down. Standard Life explained that post-sales underwriting checks are routine and conducted after the sale to avoid delays in obtaining information. The ombudsman found the letter was reasonable, factual, and not misleading, as it appropriately addressed customers' primary concern about potential reductions and explained that most customers would see no changes. The ombudsman rejected the complaint, finding no breach of COBS 4 and no negative impact from the letter's wording.

The Ombudsman's reasoning

The ombudsman found the letter was reasonable, factual, and not misleading despite not mentioning the possibility of annuity increases. The ombudsman reasoned that customers' primary concern would be potential reductions, and the letter appropriately addressed this by stating most customers would see no changes. The ombudsman concluded that omitting the possibility of increases did not create negative impact or breach COBS 4 requirements for clear, non-misleading communications. The ombudsman also rejected Mr C's other points, finding Standard Life's underwriting procedure was appropriate and that Standard Life was not accusing him of lying.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website