Not upheld: account restriction procedure and communication method complaint against Hargreaves Lansdown Asset Management Limited (HLAM)

Decision detail

Summary

Mr I complained that HLAM restricted his fund and share account on 12 February 2026 and notified him by second class post rather than phone or email, which he considered inappropriate given the seriousness of the restriction. He was concerned about the impact on his pension withdrawal and ability to access funds while away from home. HLAM lifted the restrictions on 19 February 2026 after verification was completed and offered £50 compensation. The ombudsman found HLAM's actions reasonable, noting that second class post was appropriate for security reasons, the restrictions were clearly communicated, and the pension withdrawal proceeded normally on 25 February 2026.

The Ombudsman's reasoning

The ombudsman found that HLAM's use of second class post was not unreasonable given the need to protect sensitive information and that email would present heightened security risks. The letter clearly stated the restrictions on withdrawals and top-ups. The verification process was completed promptly within HLAM's service level agreement, and the pension withdrawal proceeded as normal. While communication could have been better, the £50 compensation adequately addressed the inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website