Partially upheld: General financial advice complaint against Scottish Widows Limited
Financial Ombudsman decision DRN-6368739 of 2026-06-24T00:00:00+00:00. General financial advice complaint against Scottish Widows Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6368739 |
|---|---|
| Decision date | 2026-06-24T00:00:00+00:00 |
| Firm | Scottish Widows Limited |
| Product | Pension |
| Claim type | General financial advice |
| Outcome | Partially upheld |
| Remedy | Scottish Widows Limited must pay: (1) all annuity income missed since the annuity was established in January 2024; (2) simple interest using time-weighted average of Bank of England base rate plus 1% on missed payments from December 2024 to the date of final decision; (3) £100 compensation for distress and inconvenience. Payment must be made within 28 calendar days. If not paid by deadline, 8% simple interest per year applies to total compensation from final decision date to settlement date. |
Summary
Mr W complained that Scottish Widows treated him unfairly by refusing to unwind an annuity set up in January 2024 and preventing him from transferring his pension to another provider. A prior complaint about issues around his 75th birthday had resulted in a final FOS decision endorsing Scottish Widows' offer to reassess his annuity eligibility, which Mr W rejected. When Mr W later attempted to transfer his pension, Scottish Widows' November 2024 letter did not expressly state the policy could not be transferred. The ombudsman upheld the complaint in part, finding Scottish Widows' failure to clearly communicate the transfer restriction was a service failing, but concluded its offer to pay missed annuity income, interest, and £100 compensation was fair and reasonable redress.
The Ombudsman's reasoning
The ombudsman concluded that the prior complaint and final decision endorsing Scottish Widows' offer are not subject to revisitation in this complaint. Following Mr W's rejection of that final decision, Scottish Widows was not obliged to implement the prior offer. However, Scottish Widows' failure to expressly state in November 2024 that the policy could not be transferred was a service failing. The ombudsman found Scottish Widows' offer to pay missed annuity income since establishment, interest at Bank of England base rate plus 1% from December 2024, and £100 compensation to be fair and reasonable redress for this failing.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Scottish Widows Limited, all decisions | 833 | 20% |
| General financial advice, all decisions | 4,848 | 36% |
| Pension, all decisions | 15,602 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website