Not upheld: Pension transfer advice complaint against Westminster Wealth Management LLP

Decision detail

Summary

Mr and Mrs A complained that WWM unsuitably advised them to switch their pensions from a guaranteed 4% growth rate to a SIPP, and that they were improperly charged £3,000 in advice fees for a 2017 withdrawal. The ombudsman found the pension switch advice was suitable because the guaranteed growth loss was clearly communicated in writing, Mr and Mrs A understood they were forgoing the guarantee for greater investment flexibility and potential higher returns, and no specific return guarantees were made by the adviser. The 2017 withdrawal advice fee was appropriately charged as it involved significant pension legislation and crystallisation decisions, unlike the simpler 2018 withdrawal. The complaint was not upheld and no award was made.

The Ombudsman's reasoning

The ombudsman found that the advice to switch was suitable because: (1) the loss of the 4% guarantee was clearly communicated in writing and discussed; (2) Mr and Mrs A made an informed decision to forgo the guarantee for the benefits of greater investment choice, flexibility, and potential for higher returns; (3) the investment funds chosen reflected their cautious investor profile; (4) the slightly higher charges did not render the advice unsuitable given the benefits conferred; (5) no guarantee of specific returns was given by the adviser; (6) the 2017 withdrawal advice was appropriate as it involved significant pension legislation and crystallisation decisions; and (7) the adviser appropriately charged for this advice, unlike the 2018 withdrawal which was a simpler execution-only transaction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website