Not upheld: pension transfer delay and transfer value calculation complaint against Royal London Mutual Insurance Society, Limited (trading as Royal London)

Decision detail

Summary

Mr L complained about a delay in his pension transfer by Royal London and the use of a lower transfer value (£375,152 at request date) rather than the higher value (£378,500 at actual transfer date 11 days later). Royal London accepted responsibility for the 11-day delay and made a compensation offer including loss calculations and inconvenience payment. The ombudsman found that the terms and conditions clearly specified the transfer value would be calculated at the transfer date, which was 12 September 2025 when the request was received, and that Mr L was not contractually entitled to the higher value that accrued during the delay period. The ombudsman upheld Royal London's position and found its compensation offer to be fair and reasonable, being more generous than the ombudsman would normally recommend.

The Ombudsman's reasoning

The ombudsman found that the terms and conditions clearly provided that the transfer value would be the amount available at the transfer date, which was 12 September 2025 when Royal London received the request. This is a typical and appropriate clause in pension products given that investment values change continuously. Although Mr L may have expected the higher value shown on the APP, he was not contractually entitled to it. The ombudsman noted that if investments had fallen during the delay, Royal London would still have been bound to use the transfer date value. Royal London's compensation offer, which calculated loss on the full £375,152 rather than just the £21,808 residual amount, was found to be more generous than the ombudsman would normally recommend and therefore fair in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website