Not upheld: access to pension benefits / regulatory compliance complaint against Royal London Mutual Insurance Society, Limited

Decision detail

Summary

Mrs W sought to take her pension benefits as an Uncrystallised Funds Pension Liftetime Supplement (UFPLS) but Royal London required proof of regulated financial advice due to her pension containing a Guaranteed Annuity Rate and exceeding £30,000 in value. Mrs W requested a waiver of this requirement and asked Royal London to help her find an adviser, but the firm explained it could not waive regulatory requirements or select advisers. Mrs W subsequently struggled to find an adviser willing to provide advice without a full advice process and associated fees of £3,000-£5,000. The ombudsman upheld Royal London's position, finding the firm had complied with legislation and acted fairly, and that Mrs W's difficulty accessing affordable advice was not Royal London's responsibility.

The Ombudsman's reasoning

Royal London is required by legislation to obtain proof of regulated financial advice before allowing UFPLS on safeguarded benefits exceeding £30,000. The firm has complied with this legal requirement and acted fairly in doing so. Royal London cannot waive the requirement, select an adviser for Mrs W, or dictate how advisers should conduct their advice process. The difficulty Mrs W faces in finding affordable advice is a consequence of regulatory requirements and adviser business decisions, not Royal London's actions or errors. The £30,000 threshold is a legislative cut-off point that must be applied uniformly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website