Upheld: service failure, withdrawal delay, poor communication, misinformation complaint against InvestEngine Independent (UK) Limited

Decision detail

Summary

Mr W requested a £14,847 withdrawal from his SIPP on 2 December 2025, expecting funds within two working days. The funds did not arrive as promised, and InvestEngine compounded the problem by incorrectly stating it had sent the payment, failing to escalate to specialists, withholding the transaction reference needed for bank tracing, and failing to send funds on the promised date of 8 December 2025. Mr W ultimately received the funds on 9 December 2025, five calendar days after the expected arrival date. InvestEngine accepted its errors and offered £500 compensation, which Mr W rejected as insufficient. The ombudsman upheld the complaint but found the £500 offer fair and reasonable compensation for the distress, inconvenience, and interest on delayed funds over the relatively short delay period.

The Ombudsman's reasoning

InvestEngine accepted its errors in processing the withdrawal and communications. The ombudsman found that Mr W experienced justified worry, uncertainty, and frustration due to InvestEngine's failures: providing incorrect information about payment status, failing to escalate promptly, withholding necessary transaction reference, and failing to send funds when promised. However, the ombudsman noted the distress occurred over a relatively short 5-calendar-day period and determined that £500 compensation was fair and reasonable for the distress, inconvenience, and interest on delayed funds, rejecting Mr W's request for higher compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website