Royal London (formerly Scottish Life) – Talisman Personal Pension Plan
(PO-7724)

Ombudsman’s Determination

Outcome

I do not uphold Mr S’ complaint and no further action is required by Royal London.

My reasons for reaching this decision are explained in more detail below.

Complaint summary

Mr S says Royal London gave him incorrect information about his policy and did not tell him, before 2012, about changes to the Plan’s terms and conditions (T&Cs), namely, the removal of (i) guaranteed annuity rates (GARs) on contribution increases from 1 January 1995, and (ii) the option to increase regular contributions from 31 January 2006. Mr S says he would not have reduced his monthly contribution in June 1997, from £50 to £10, if he had known about (i) at that time.

Mr S says the Plan has changed completely and he feels he was mis-sold it. Mr S  has submitted a copy of an announcement from Equitable Life, to certain policyholders following the House of Lords ruling in July 2000 (July 2000 Ruling), which confirmed that Equitable Life were not entitled to pay lower final bonuses to policyholders who claim the benefit of GARs. He argues that whilst this is not quite the same issue as his complaint they share the basic principle.

Royal London have acknowledged that they incorrectly informed Mr S in 2012 that GARs did not apply to his Plan. They have offered Mr S £200 in compensation for the error.

Mr S wants to be allowed to increase his monthly contribution to at least £50 and he is not happy with the offer that Royal London have made.