Not upheld: Pension transfer advice complaint against Aviva Life & Pensions UK Limited

Decision detail

Summary

Mr H complained that Aviva provided incorrect information during a telephone call on 30 October 2025, when a call handler failed to explain that partial pension transfers cannot be completed after crystallisation. Although Aviva sent corrective written documentation the same day which Mr H signed to confirm he had read, he proceeded with the crystallisation and tax-free cash withdrawal, only discovering the restriction when attempting to transfer funds to his SIPP. The ombudsman found that Aviva's error was corrected before Mr H acted to his detriment, the written information was clear and accessible, and Mr H was ultimately able to achieve his objectives through a full transfer and re-enrolment solution. The ombudsman upheld Aviva's offer of £150 compensation as fair and reasonable, finding no basis for additional compensation or financial loss assessment.

The Ombudsman's reasoning

Although Aviva made an error during the telephone call by not informing Mr H that partial transfers were not possible after crystallisation, the mistake was corrected the same day through written documentation which clearly explained the position. Mr H signed a declaration confirming he had read the relevant leaflet which stated transfers must apply to the whole plan. The ombudsman found that Mr H had the opportunity to make an informed decision before proceeding with the withdrawal, and the written information provided was clear and accessible. The ombudsman applied the principle that where incorrect information is given but corrected before the consumer acts to their detriment, and where the consumer could have mitigated their position, compensation should be modest. Mr H was able to achieve substantially what he wanted through the full transfer and re-enrolment solution, and no financial loss was directly caused by Aviva's error as Mr H had the correct information before signing the paperwork.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website