Partially upheld: Service failures generally complaint against Options UK Personal Pensions LLP

Decision detail

Summary

Mrs S complained about Options' handling of her late husband's SIPP death benefits distribution. The SIPP contained property investment, Fund A investments, and cash. While the property transaction was complex and involved multiple parties, Options caused avoidable delays in instructing solicitors (14 weeks instead of 2), reviewing transfer documents (4 weeks instead of 2), and confirming to proceed (3 weeks instead of 2). The ombudsman found that the cash balance and Fund A proceeds should have been transferred to Mrs S's new SIPP much earlier, particularly once it opened in November 2024, rather than waiting until March 2026 when the property sale completed. The ombudsman partially upheld the complaint, ordering £500 compensation for distress and 8% simple interest on the delayed funds.

The Ombudsman's reasoning

While the distribution was complex and involved multiple parties, Options caused avoidable delays in several areas: taking 14 weeks instead of 2 weeks to instruct Firm D, 4 weeks instead of 2 weeks to review the second draft of the Deed of Transfer, and 3 weeks instead of 2 weeks to confirm proceeding. The cash balance and Fund A proceeds were straightforward matters that should have been transferred to Mrs S's SIPP much earlier, particularly once her SIPP opened in November 2024. Options' policy of not distributing death benefits piecemeal was unreasonable in these circumstances given that the property investment would remain in Mr S's SIPP and its proceeds would likely cover any costs. Mrs S should have had access to these funds for income or investment purposes from November/December 2024 onwards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website