Approved Minimum Retirement Fund AMRF Decision Reference 2021-0407

• Case Outcome: Substantially upheld
• Reference: 2021-0407
• Date: 05 November 2021
• Year: 2021
• Subject Matter: Approved Minimum Retirement Fund AMRF
• Conducts Complained Of: Failure to process instructions,Maladministration
• Finantial Sector: Investment

Decision Ref:

2021-0407

Sector:

Investment

Product / Service:

Approved Minimum Retirement Fund AMRF

Conduct(s) complained of:

Failure to process instructions

Maladministration

Outcome:

Substantially upheld

LEGALLY BINDING DECISION

OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

The Complainant invested in an Approved Retirement Fund (ARF) and an executive

Advantage Plan (AP) with the Provider around 2010.

The Complainant’s Case

The Complainant made a claim on his ARF in January 2019. The Complainant argues that

he sent an accompanying letter with the ARF claim instructing the Provider to wait to

make his ARF payment to him after his 66th birthday in April 2019. The Complainant also

made a claim on his AP in January 2019 along with a similar instruction to the Provider to

wait to make his AP payment after his 66th birthday.

By email dated 13 February 2019, the Complainant made further instructions to the

Provider in respect of the manner in which he wished for his ARF payment to the made.

The Complainant identified an account that he wished the funds to be transferred to. He

stated that he wished to draw the full amount of the AMF if it is taxed at 20%. He indicated

that he had applied for his state pension and that once he received it, it would put him

above the €12,700 tax threshold, then he would like to draw the 25% tax free sum from his

ARF and discuss his options with the Provider in respect of the balance.

In the same email of 13 February 2019 and in respect of his AP, he instructed that he

wished to draw the 25% tax free lump and the balance as taxable cash if it is taxed at 20%.

- 2 -

/Cont’d…

The Complainant argues that the Provider surrendered payment of his ARF on 14 February

2019. He submits that the early payment of his AMF meant that he was put into a higher

tax bracket for 2019. The Complainant is dissatisfied that the Provider made payment of

his ARF in February 2019 against his instructions and states that this resulted in financial

loss to him. The Complainant submits that he contacted the Provider and instructed that

no further payments should be made to him until he instructed it to do so.

The Complainant submits that the Provider made payment of his AP in May 2019. The

Complainant states that the funds were deposited to his account without any prior

notification to him and that he only received correspondence in that regard from the

Provider a few days after payment had been made.

The Complainant submits that he had requested the Provider to make both of these

payments into a specific bank account. The Complainant submits that he decided not to

supply the Provider with the account details to prevent the Provider from making the

payments until he instructed it to do so. He states that he had informed the Provider in

that regard and that the Provider had confirmed and assured him that it could not make

any payment to his account without his account details.

The Complainant submits that the Provider identified an account in his name which it had

used for other regular payments to him and it used this account to pay the funds into

without his instruction.

The Complainant submits that he changed address and informed the Provider of the

updated address, which had confirmed the updated address. He states that, in error, the

Provider sent correspondence to his former address and used the postcode from his

former address in its correspondence to him.

The Complainant contends that the Provider’s premature payments of his ARF and his AP

claim resulted in a financial loss to him. He states that he has had to pay an additional

£1,828 in tax as a result.

The Provider’s Case

The Provider states that in a Claim Form completed on 27 January 2019 and emailed to the

Provider on 30 January 2019, the Complainant indicated that he wished to withdraw the

total ARF plan. The Provider states that in a letter dated 25 January 2019 and emailed to it

on 2 February 2019, the Complainant asked that the claim be processed after his 66th

birthday in April 2019. In a subsequent email dated 13 February 2019, the Provider states

that the Complainant noted that he wished to claim the full pension but only if it was

subject to tax at 20%. He also noted the details of a bank account to which the proceeds

were to be lodged.

In respect of the AP plan, the Provider states that in a Claim Form completed on 27

January 2019 and emailed to the Provider on 30 January 2019, the Complainant indicated

that he wished to receive a breakdown of the pension options available to him.