Shares/Equities Investment Decision Reference 2025-0203

• Case Outcome: Partially upheld
• Year: 2025
• Reference: 2025-0203
• Date: 19 December 2025
• Subject Matter: Shares/Equities Investment
• Finantial Sector: Investment
• Conducts Complained Of: Value of policy at surrender less than expected or projected,Delayed or inadequate communication, Switching funds

Decision Ref:

2025-0203

Sector:

Investment

Product / Service:

Shares/Equities Investment

Conduct(s) complained of:

Value of policy at surrender less than expected or

projected

Delayed or inadequate communication

Switching funds

Outcome:

Partially Upheld

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

Background

This complaint relates to a "Unit-linked whole of life assurance policy for single, ad hoc or

regular premiums” (the “Policy”). The Provider is the insurance undertaking who provided

the Policy which was taken out through an independent intermediary (“Intermediary Y”).

Company X is the current fund manager (“Fund Manager”) who acquired the wealth

management business of which Intermediary Y was a part of.

The Complainant’s Case

The Complainant commenced the Policy in July 2011, investing £100,000 (One Hundred

Thousand Pounds Sterling) through Intermediary Y his "independent insurance

intermediary". He says that a further £140,000 (One Hundred and Forty Thousand Pounds

Sterling) was added to the investment in 2016.

On 12 August 2019, the Complainant was informed by the Provider that Intermediary Y

would no longer be his "independent insurance intermediary....but the account

valuations..." would remain in Intermediary Y’s name until Sept 30, 2020.

The Complainant says that between the end of September 2020 and 31 December 2020

- 2 -

/Cont’d…

the account was "switched to [Company X] without my being informed without my consent

& with any contract being signed". When he asked the Provider about the "name change"

he says he was assured that nothing had changed except the name of the 'Fund Manager'.

Between 31 December 2021 and 30 June 2022, the Complainant says the investment value

fell, losing £46,000 (Forty-Six Thousand Pounds Sterling). The Complainant contends that

his monies are being handled by a company he "knows nothing about" nor did he sign an

agreement to the "switch" or receive notification of the change.

The Complainant contends that the Provider is responsible for the investment losses,

incurred over the 6-month period, on what he was told was a "safe return". In July 2022

the Complaint says he contacted Intermediary Y the previous intermediary, who he states

informed him that when "...the policy name was sold to [Company X], it was "... free to do

with it as they wished”. So, as opposed to what [he] had been told by [the Provider] it

wasn't the fund manager that had changed but the whole investment strategy".

The Complainant argues that the Provider took the responsibility of placing his money

without his knowledge or agreement and it should therefore "take the responsibility for

the losses incurred”.

In response to submissions by the Provider wherein it stated that it advised the

Complainant to appoint a new independent intermediary, the Complainant states that he

did not appoint a new independent intermediary as he was “intending to stay with

[Intermediary Y] until the end of my days why would I need an independent intermediary”

and that his “experience with financial advisors could not be described as positive and why

would I need one if I was committed to the fund?”. The Complainant further states that the

independent intermediary has no influence on the investment strategy of the Fund

Manager and that after “10 years of positive growth with [Intermediary Y] all gains were

wiped out in 6 months when [Company X] took over.”

The Complainant also submits that the fund invested in was a “joint venture” between the

Provider and Intermediary Y and states that, with Intermediary Y “out of the picture would

it not be incumbent on [Provider] to inform me of the upcoming change so that a new

contract could be signed?”

The Complainant submits:

“In 2021 had [Provider] officially informed me that the fund was being sold I would

have spoken with my own financial advisor to get background on the buyer and

from what I've gathered since I would have switched to a safer harbour.”