Not upheld: Investment mis-selling complaint against Scottish Widows Limited

Decision detail

Summary

Mr A complained to Scottish Widows Limited after requesting a fund switch online on 5 March 2026 and attempting to cancel it shortly thereafter. When told cancellation was not possible, he requested a switch back, which completed on 10 March 2026 rather than 9 March 2026, resulting in investment losses. Mr A argued that SW's communications and terms and conditions were unclear about whether fund switches could be cancelled and sought compensation for his losses. SW offered £250 for lack of clarity but refused to compensate for the investment losses. The ombudsman found that although SW's messaging could have been clearer, SW was not required to offer a cancellation option, Mr A could have clarified this beforehand, and the investment losses resulted from normal operational timings in line with industry practice, not from SW's wrongdoing. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that although SW's messaging and terms and conditions could have been clearer regarding fund switch cancellation, SW was not required to offer a cancellation option. The ombudsman noted that Mr A could have clarified this with SW before proceeding with the switch. Since SW did not say cancellation was possible, and Mr A's assumption was based on experience with another provider, it was not fair to hold SW to that expectation. The investment losses were not caused by SW's conduct but by the normal operational timings of fund switches, which were in line with industry practice and the plan's terms and conditions. The £250 compensation for lack of clarity and service issues was deemed appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website