Pension and decumulation complaints up at FOS

The Financial Ombudsman Service received a total of 95,349 complaints between 1 July and 31 December 2023 compared to 79,921 complaints in the same period in 2022. Despite the overall jump in complaints, the number of decumulation life and pension complaints rose by a more modest 4% in the second half of 2023. There were 3,996 new decumulation life and pension complaints in H2 2023, compared to 3,842 in H2 2022. The 20% rise in financial complaints was mainly driven by banking and credit complaints, with current accounts and credit cards making up 40% of the Ombudsman’s cases in this sector. New investment complaints fell slightly to 2,311 in H2 2023, compared to 2,427 in H2 2022. The Ombudsman also saw an increase in general insurance complaints. Overall, in the last six months of 2023 the FOS upheld 36% of complaints in consumers’ favour, compared to 34% in the second half of 2022. However, this was much higher for decumulation life and pensions which had an average percentage of cases upheld of 51%. For investments an average of 36% of complaints were upheld. Abby Thomas, chief executive and chief ombudsman at the Financial Ombudsman Service, said: “In light of the continuing economic challenges people face, it’s always concerning to see complaint levels continue to rise. “People’s relationships with their banks and insurers are incredibly important, with many relying on these businesses for their homes, their cars and their livelihoods. That’s why I’m determined to ensure firms create an environment which is fair and transparent for all consumers.” Among the financial advice and wealth management companies with new complaints lodged with the FOS during the second half of 2023 was Hargreaves Lansdown with 92 new complaints. Of these 61 were related to investments and 28 related to decumulation life and pensions. However, only 14% of cases resolved during the period were upheld. Wealth manager St James’s Place saw 250 new complaints over the half year with the majority related to investments (93) or decumulation life and pensions (145). The firm’s uphold rate was 38%. Openwork Limited saw 43 new complaints. Of these 14 were related to mortgages and home finance, 7 were related to general insurance and protection, 6 were related to investments and 16 related to decumulation life and pensions. Of the cases resolved during the period 33% were upheld. Financial Planner and wealth manager Quilter saw 34 new complaints. Of these 12 were related to investments and 19 were related to decumulation life and pensions. Quilter’s uphold rate was 55%. True Potential Wealth Management saw 38 new complaints with 7 related to investments and 30 related to decumulation life and pensions. Its uphold rate was 70%. Interactive Investor saw 53 new complaints, with 39 related to investments and 39 related to decumulation life and pensions. There were 42 new complaints against Fidelity International’s retail investment platform subsidiary Financial Administration Services Ltd during the second half of 2023, with 36 complaints relating to investments and 4 relating to decumulation life and pensions.

Pension and decumulation complaints up at FOS

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