Not upheld: Account administration errors complaint against Aon UK Limited, trading as Aon Employee Benefits

Decision detail

Summary

Mr E requested a 50% fund switch into cash on 3 April 2025 before 1pm, but the switch was delayed due to a system failure requiring manual intervention. The switch was eventually processed on 7 April 2025 using the 4 April unit price rather than the 3 April price Mr E believed he would receive. Aon completed a loss assessment establishing a £675.50 loss and offered £200 compensation. Mr E disputed whether the 3 April price should have been used and whether he should be compensated for missing an uptick in equity prices while his funds remained in the cash fund. The ombudsman upheld Aon's position, finding the 4 April price was correct under policy terms and that Mr E's decision not to switch back into equities was his own choice, not Aon's responsibility.

The Ombudsman's reasoning

The ombudsman found that although Aon provided unclear information about the pricing date, the policy terms clearly stated that the unit price used would be the working day after approval (4 April 2025, not 3 April 2025). The ombudsman concluded that Mr E would likely have accepted a one-day delay even if properly informed, given his primary concern was the tariff announcements rather than the specific timing. The ombudsman rejected Mr E's argument that he should have received the 3 April price, finding no clear indication in the call that this was a condition of the switch. The ombudsman also rejected claims for losses from not switching back into equities, as this was Mr E's choice and Aon did not prevent him from doing so. The £200 compensation was deemed appropriate for the distress and inconvenience caused by the delay and the effort required to sort out the loss assessment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website