Bonds Decision Reference 2023-0267

• Case Outcome: Partially upheld
• Year: 2023
• Date: 29 November 2023
• Reference: 2023-0267
• Subject Matter: Bonds
• Finantial Sector: Investment
• Conducts Complained Of: Value of policy at surrender less than expected or projected

Decision Ref:

2023-0267

Sector:

Investment

Product / Service:

Bonds

Conduct(s) complained of:

Value of policy at surrender less than expected or

projected

Outcome:

Partially upheld

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint concerns the management of a long-term care investment bond (‘the

Bond’) incepted by the Complainant in 1988.

The Complainant’s Case

The Complainant says that in 1998, he made an investment of UK£15,000 (fifteen

thousand Sterling pounds) in the Bond. This product was underwritten by a different

financial service provider, and subsequently it came under the umbrella ownership of the

Provider.

The purpose of the Bond was to provide regular payments towards the cost of care

services, should a claim need to be made by him. The Complainant submits that he was

given to understand, because it was “indicated unequivocally” from the bond’s illustration,

in the initial outlay for the product, that if a claim were to be made:

“this would provide a sum of £21,363.00 per annum”

The Complainant notes that year by year, the Provider sent annual letters to him,

indicating that the value of the Bond was diminishing, and informed him in each letter,

that the Bond would have no value, upon him reaching the age of 84.

The Complainant says that prior to making this complaint, he was told by the Provider that

unless he made a further investment of UK£63,875 (sixty-three thousand, eight hundred