Partially upheld: delay in arranging insurance policies; non-disclosure of material facts; unreasonable investigation process and requests for information complaint against Fairstone Financial Management Limited
Financial Ombudsman decision DRN-6368588 of 2026-05-22T00:00:00+00:00. delay in arranging insurance policies; non-disclosure of material facts; unreasonable investigation process and requests for information complaint against Fairstone Financial Management Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6368588 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | Fairstone Financial Management Limited |
| Product | life insurance and income protection insurance |
| Claim type | delay in arranging insurance policies; non-disclosure of material facts; unreasonable investigation process and requests for information |
| Outcome | Partially upheld |
| Remedy | Fairstone Financial Management Limited is directed to: (A) pay £700 compensation for distress and inconvenience; (B) reimburse £350 in costs incurred by Mr H obtaining medical letters requested by Fairstone (upon provision of invoices); (C) pay simple interest at 8% per annum on the reimbursed amount from the date of payment to settlement, with tax treatment as required by HMRC. |
Summary
Mr H complained that Fairstone delayed arranging new life and income protection insurance policies, which he believed prevented him from making a successful claim after requiring surgery for hip osteoarthritis. Fairstone accepted it delayed submitting Mr H's application from July to September 2024. When Mr H subsequently made an income protection claim, insurer A declined it, citing non-disclosure of material facts. The ombudsman found that Mr H had failed to disclose hip/groin pain symptoms (present since March 2024) and had inaccurately stated his weight when applying in July 2024. Medical evidence confirmed these non-disclosures would have resulted in policy cancellation regardless of Fairstone's delay. However, the ombudsman upheld the complaint in part, finding Fairstone liable for distress and inconvenience caused by its delay and unreasonable investigation process, including unnecessary requests for medical information that cost Mr H £350 to obtain.
The Ombudsman's reasoning
The ombudsman found that although Fairstone unreasonably delayed submitting the application to insurer A by approximately two months (July to September 2024), this delay did not ultimately affect the outcome. Mr H failed to disclose hip/groin pain symptoms that he had been experiencing since early March 2024 when answering the joint and muscle pain question in July 2024. Medical evidence supported that these symptoms existed before the application was submitted. Additionally, Mr H inaccurately disclosed his weight, being approximately four stones heavier than stated. Both non-disclosures would have resulted in insurer A declining to offer the policies regardless of when the application was submitted. However, Fairstone is liable for the distress and inconvenience caused by its delay and unnecessarily complicated investigation process, including unreasonable requests for medical information that Mr H had to obtain at personal expense.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Fairstone Financial Management Limited, all decisions | 39 | 55% |
Source
Read the original decision on the Financial Ombudsman Service website