Upheld: provision of unclear and contradictory information regarding trustee changes; failure to provide fair and not-misleading guidance complaint against Zurich Assurance Ltd
Financial Ombudsman decision DRN-6389483 of 2026-05-29T00:00:00+00:00. provision of unclear and contradictory information regarding trustee changes; failure to provide fair and not-misleading guidance complaint against Zurich Assurance Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-6389483 |
|---|---|
| Decision date | 2026-05-29T00:00:00+00:00 |
| Firm | Zurich Assurance Ltd |
| Product | investment bond |
| Claim type | provision of unclear and contradictory information regarding trustee changes; failure to provide fair and not-misleading guidance |
| Outcome | Upheld |
| Remedy | Zurich Assurance Ltd must: (1) Pay the claims under the bonds upon receipt of necessary documents; (2) Pay 8% simple interest on claim values from March 2023 to payment date, provided appropriate paperwork is submitted within a reasonable timeframe; (3) Refund legal fees incurred between 1 February 2023 and 24 October 2023 and pay 8% simple interest from invoice payment dates to settlement; (4) Pay £600 compensation for distress and inconvenience |
Summary
Mr T1 complained on behalf of the estates of Mr and Mrs T about Zurich Assurance Ltd's handling of trustee changes for investment bonds held in trust. When deeds of amendment were submitted in July 2022 to remove a dissolved trustee (Company B) and appoint new trustees, Zurich provided unclear and contradictory information, initially stating a court application would be necessary when it was not. This confusion led to legal fees being incurred between February and October 2023. Mr T passed away in March 2023 before the issue was resolved, leaving the bond claims unpaid. The ombudsman upheld the complaint, finding Zurich should have clearly explained why the deeds weren't appropriate and that legal advice would be needed, and ordered Zurich to refund the legal fees, pay 8% interest on both the fees and bond claim values, and pay £600 compensation.
The Ombudsman's reasoning
The ombudsman found that Zurich failed to provide clear, fair and not-misleading information when the deeds of amendment were received in July 2022. Although Zurich did not cause the initial misunderstanding about how the deeds could be used, they had a duty to clearly correct the misunderstanding once it became apparent. The ombudsman identified multiple instances of incorrect or contradictory information provided between August 2022 and October 2023, including incorrect statements about court applications being necessary. This confusion directly led to the need for legal advice. The ombudsman was satisfied that had clear information been given in 2022, the necessary paperwork likely would have been completed before Mr T's death in March 2023, allowing the bond claims to be paid without delay. The totality of Zurich's failures, rather than any single event, justified awarding the legal costs incurred.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Zurich Assurance Ltd, all decisions | 1,016 | 28% |
Source
Read the original decision on the Financial Ombudsman Service website