Not upheld: Account administration errors complaint against Morgan Lloyd SIPP Services Limited

Decision detail

Summary

Mr M complained that Morgan Lloyd unfairly charged annual administration fees to his SIPP while his funds were held in a cash account between September 2019 and October 2020, arguing the account was 'dormant' and should not incur management fees. Morgan Lloyd maintained that its fixed annual fees applied to the SIPP regardless of investment type, as clearly set out in the charges schedule Mr M had agreed to in 2012. The ombudsman found that Morgan Lloyd had properly disclosed the fees, obtained Mr M's written agreement, and that the annual administration fee covers overall SIPP management rather than individual investment management, so it was fairly applied even when funds were in cash. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Morgan Lloyd clearly disclosed its charges before the recommendation proceeded and Mr M accepted these charges as part of the SIPP terms and conditions. The annual administration fee is for overall management of the SIPP plan, not individual investment management, and applies regardless of how funds are invested. The SIPP was not 'dormant' but remained an active plan requiring the same level of administration. Morgan Lloyd applied its charges in the way it said it would and there is no evidence it said fees would be amended or suspended if funds were held in cash.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website