The scheme administrators of a small self administered scheme failed to act on an investment instruction, instead filing the instruction, the delay in carrying out the instruction caused a loss scheme. The Pensions Ombudsman held that this failure to act was maladministration and directed the administrator to compensate the scheme for the loss incurred.

The ombudsman rejected the administrator's argument that the investment advisor was jointly liable as it had not chased the administrator for proof that the instruction had been carried out. The error had been noticed by the advisors at their annual review, which was the earliest opportunity they could reasonably be expected to have discovered the mistake. Having sent a clear instruction in the proper manner the trustees were entitled to presume that it had been carried out.