Financial Ombudsman or Pensions Ombudsman: which handles your complaint

If your complaint is about a pension, the first question is which ombudsman to use. The Financial Ombudsman Service handles complaints about advice to take out a personal pension, to transfer, to buy an annuity or to go into drawdown, and about investments in SIPP, EPP or SSAS plans. It also handles the administration of a personal pension scheme, including self-invested pensions and group personal pensions¹.

The Pensions Ombudsman can look at complaints about the administration of personal and occupational pension schemes³. Where a complaint is about the administration of a personal pension scheme, either the Financial Ombudsman Service or The Pensions Ombudsman could help you¹.

The dividing line is usually the type of firm and the nature of the problem. Where the firm is not on the FCA Register, the complaint goes to the Pensions Ombudsman¹. Where it is unclear which scheme applies, a complaint can be brought to the Financial Ombudsman Service, which will say if it thinks the Pensions Ombudsman should deal with it⁴.

What the Financial Ombudsman Service covers

The Financial Ombudsman Service provides dispute resolution between banks and customers, and considers the individual circumstances of a complaint¹. In relation to pensions, it can consider matters which concern advice relating to the sale or marketing of individual pension arrangements⁹.

Its pension scope is set out in more detail. It covers advice to take out a personal pension, including group personal pensions, stakeholder pensions and self-invested personal pensions; advice to transfer from a defined benefit occupational pension scheme to a personal or other defined contribution pension scheme; advice to take out an annuity or go into drawdown; advice on investments in SIPP, EPP or SSAS plans; advice about management of a personal pension portfolio; advice on taking out an annuity or section 32 buy-out policies in the individual consumer's name; and administration of a personal pension scheme including SIPPs, group personal pensions and annuities in payment¹.

It also handles complaints about the administration of personal pension schemes including self-invested pensions and group personal pensions¹. Where investments were unsuitable and the pension pot is smaller as a result, it will usually tell the IFA, pensions adviser or provider to make up the difference².

The service covers a wide range of other financial products too: banking and payment services including current accounts, savings accounts, direct debits, money transfers, electronic payment platforms, cheques and banker's drafts¹⁰; consumer credit complaints about payday loans, the affordability of lending, and the quality of goods bought or hired with credit¹¹; and investments¹².

Complain to the firm first: the eight-week rule

A complaint reaches the Financial Ombudsman Service only after a formal complaint has been made to the company involved. If no final response letter arrives within eight weeks, or the response is unsatisfactory, the complaint can then be brought to the ombudsman¹.

A firm has a maximum of eight weeks to try to resolve a complaint⁶. For most types of complaint, the firm needs to give you its final response within eight weeks¹⁴. Financial businesses should look into things and reply within 8 weeks¹⁵.

Once you have a final response, you need to make a complaint to the ombudsman within 6 months from the date on your final response⁷. If you are still unhappy or the firm has not responded in time, you have six months to take your complaint to the free Financial Ombudsman Service¹⁶.

Who can bring a complaint to the Financial Ombudsman

The Financial Ombudsman Service can usually help individual or joint consumers of a financial business that provides services or products in the UK, regardless of nationality or where they live⁸. It can help if you have made a complaint to the financial business and you are not happy with its answer¹⁷.

Where the firm is not on the FCA Register, the complaint goes to the Pensions Ombudsman¹. Where it is unclear which scheme applies, a complaint can be brought to the Financial Ombudsman Service, which will say if it thinks the Pensions Ombudsman should deal with it⁴.

The Pensions Ombudsman may investigate and determine any complaint in relation to the administration of a scheme, involving an authorised complainant and the administrator of the scheme¹⁸. It can look at complaints about the administration of personal and occupational pension schemes³.

Other consumer complaints that reach the Financial Ombudsman Service include credit union complaints, where you can take your complaint to the free service if you are unhappy with the final response or the timeframe has passed¹⁹; and complaints against a currently trading funeral plan provider or intermediary, which may be referred to the service after first complaining to the provider²⁰.

Making a complaint is free and you do not need a representative

Bringing a complaint to the Financial Ombudsman Service is straightforward and will not cost you anything¹⁴. The service is free and easy to use¹³. You do not need a lawyer or anyone else to represent you⁸.

You do not need to pay anyone to represent you, for example a lawyer or claims management company, but you can ask a family member, friend or someone else to help²². Unlike a court, you generally do not need anyone to represent you, and the service can talk to a member of your family if you prefer²³.

To complain, you fill in the complaint form. If you are considering using AI to help you complete the form, the service publishes guidelines on using AI before you start¹³. Those guidelines say to avoid entering personal information that you would not want shared, such as health or banking information; to only use AI to help you organise information or put it clearly; and to check the resulting text carefully⁷.

How an investigator and an ombudsman reach a decision

When the Financial Ombudsman Service has finished investigating, it will tell you whether it thinks the business treated you fairly or not, and it will explain how it reached its decision¹². It considers facts and evidence from both the business and the customer, then sets out its findings explaining the decision and what needs to be done to put things right¹¹.

If one or both sides disagree with the investigator's view, they can ask for the complaint to be referred to one of the ombudsmen, who takes a fresh look including any new evidence²³. If an ombudsman's decision on what has happened differs from the investigator's, they will send a provisional decision explaining why, before a final decision is issued²³.

In around 1 in 10 cases, either the firm or the consumer asks for a review and final decision by an ombudsman²⁴. The decision is based on relevant law and regulations, the regulator's rules, guidance and standards, and industry codes of practice and, where appropriate, good industry practice¹³.

The time it takes to investigate a complaint depends on what it is about, how complex it is and how quickly information can be obtained¹. In the reporting period from 9 July 2024 to 8 July 2025, the average time from receipt of all the information needed to start investigating until an initial assessment was issued was 60.81 days²⁵.

Compensation: awards up to £455,000 plus interest

The Financial Ombudsman Service can award up to £455,000 for complaints referred on or after 1 April 2026 about acts or omissions that occurred on or after 1 April 2019⁵. The limit has risen over time: £445,000 for complaints referred on or after 1 April 2025, £430,000 for complaints referred on or after 1 April 2024, £415,000 for complaints referred between 1 April 2023 and 31 March 2024, £375,000 for complaints referred between 1 April 2022 and 31 March 2023, and £355,000 for complaints referred between 1 April 2020 and 31 March 2022⁵.

The service can recommend that a business pays more if it thinks that is fair, but the business does not have to accept that recommendation⁵. If you were awarded interest for being deprived of money because the business delayed payment, that interest payment can be awarded on top of the limit⁵.

Interest works differently depending on when the complaint was referred. Before 1 January 2026, the service typically asked financial businesses to use a rate of interest at 8% simple a year. From 1 January 2026, it typically asks them to calculate this using a time-weighted average of the Bank of England base rate plus one percentage point⁵. The interest rate for late payment is usually 8% simple a year, and the deadline for payment is usually 28 calendar days from the date the service informs the financial business that you have accepted the final decision⁵.

Where a complaint is upheld, the service will tell the business to put you back where you would be if it had not made a mistake, and possibly make an award for distress and inconvenience¹⁰. Compensation for distress and inconvenience can be up to £1,500 in some cases²⁷, and up to £300 in others¹⁵.

For group schemes, any award will go to the employer as the policyholder²⁸. Where the calculation shows you have suffered a financial loss, the redress can be paid directly to you or to your private pension²⁹.

A final decision you accept is legally binding

The Financial Ombudsman Service's final decisions are legally binding if accepted by the complainant³⁰. They are legally binding if accepted by the consumer²⁶. Once accepted, the decision and any redress awarded become binding on the firm³¹. Both the consumer and the firm are bound by the decision; otherwise the firm is not bound but the consumer remains free to take court proceedings³².

An ombudsman's final decision is legally binding if you accept it, and enforceable in court³³. Final determinations, once accepted by the complainant, are binding on both the complainant and the respondent firm³⁴.

The Pensions Ombudsman's decision is final and binding on all the parties to the complaint or dispute³⁵. An Ombudsman Determination is a final, binding decision, enforceable in court³. Its determinations are legally binding on all the parties and are enforceable in court³⁶.

If either side is unhappy with the decision, they cannot appeal an ombudsman's final decision to another ombudsman²³. Consumers can still go to court if they do not want to accept the Ombudsman's decision³⁷. You can also still refer your case to the Financial Ombudsman, which may be able to consider taking action on your behalf³⁸.

Where to get free help

MoneyHelper provides free, impartial guidance on money matters, including basic bank accounts¹⁶ and credit union current accounts¹⁹. The Pensions Ombudsman publishes guidance on where to go for help with your pension complaint³⁹, and signposts consumers to its service⁴⁰.

The Pensions Regulator publishes guidance on internal dispute resolution procedures for pension schemes³⁵. The Financial Ombudsman Service offers a Business Support Hub for businesses and consumer advisers on how a complaint might be looked at and guidance on rules¹¹.

If you are complaining about a firm that is not on the FCA Register, the Financial Ombudsman Service advises using the Financial Conduct Authority's Firm Checker to confirm the firm is authorised and help avoid scams¹⁰.