Upheld: failure to conduct policy reviews; inadequate information provision; failure to assess ongoing suitability complaint against Phoenix Life CA Limited
Financial Ombudsman decision DRN-6322857 of 2026-06-04T00:00:00+00:00. failure to conduct policy reviews; inadequate information provision; failure to assess ongoing suitability complaint against Phoenix Life CA Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6322857 |
|---|---|
| Decision date | 2026-06-04T00:00:00+00:00 |
| Firm | Phoenix Life CA Limited |
| Product | Life / income protection |
| Claim type | failure to conduct policy reviews; inadequate information provision; failure to assess ongoing suitability |
| Outcome | Upheld |
| Remedy | Phoenix Life CA Limited must: (1) pay Mr P a further £100 in compensation in recognition of distress and inconvenience caused by errors and delays in review calculations after 2021 (total compensation £350, with £250 already paid); (2) provide updated review letters for each policy as a matter of priority; (3) set out the remediation completed in a straightforward and clear way so Mr P can understand the calculation and adjustments made to units held as a result of the reviews; (4) add units to cover any higher cover charges that would have been paid during the timeframe of delay in producing review letters to ensure no financial detriment. |
Summary
Mr P complained that Phoenix Life CA Limited failed to conduct policy reviews on his two whole of life protection policies since 2022 and did not provide suitability advice after his retirement. Phoenix acknowledged system failures prevented accurate reviews from 2022-2025 and offered £250 compensation plus a remediation strategy to add units covering higher charges during the delay period. The ombudsman upheld the complaint, finding Phoenix's failures caused distress and inconvenience, but concluded on balance that better information would not have led Mr P to surrender the policies earlier, given his history of increasing premiums to maintain cover. The ombudsman ordered an additional £100 compensation (total £350) and required Phoenix to complete remediation reviews with clear explanation of adjustments made.
The Ombudsman's reasoning
The ombudsman found that while Phoenix was not responsible for providing ongoing suitability advice (as it was a product provider, not an advisory firm), it did have obligations to provide clear, fair and not misleading information. Although Phoenix failed to provide accurate reviews from 2022 onwards due to system issues, the ombudsman concluded on the balance of probabilities that better information would not have led Mr P to surrender the policies earlier, given his demonstrated commitment to maintaining cover by increasing premiums after failed reviews and continuing to hold the policies despite declining values. However, the system failures did prevent Mr P from understanding whether policies were on track and caused emotional and practical impact. The ombudsman found Phoenix's remediation strategy (reconstructing policies and adding units to cover higher charges during the delay period) to be fair and reasonable, and agreed that compensation of £350 total was appropriate for the distress and inconvenience caused.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Phoenix Life CA Limited, all decisions | 47 | 29% |
| Life / income protection, all decisions | 10,405 | 21% |
Source
Read the original decision on the Financial Ombudsman Service website