Not upheld: Pension transfer advice complaint against Fairstone Wealth Management Limited

Decision detail

Summary

Mr E complained that Fairstone gave him unsuitable advice in May 2014 to transfer his pension from Skandia to a SIPP with James Hay, claiming it was a defined benefits scheme transfer. The ombudsman established the Skandia pension was actually a personal pension, not a defined benefits scheme. After reviewing the advice process, the ombudsman found Fairstone properly conducted a fact-find, accurately assessed Mr E's attitude to risk at 6/10, confirmed his investment experience, and issued a suitable recommendation. The proposed transfer offered financial value with lower charges and higher projected value at age 75, and the portfolio was appropriate for Mr E's risk profile. The complaint was not upheld and no award was made.

The Ombudsman's reasoning

The ombudsman applied FCA regulatory rules COBS 2.1.1R and COBS 9.2.2R, which require businesses to act honestly, fairly and professionally in the client's best interests and to gather necessary information to ensure advice meets the client's objectives. The ombudsman found that Fairstone properly conducted a fact-find process, accurately assessed Mr E's attitude to risk at 6/10 through a fair questionnaire, confirmed his investment experience, and issued a suitability letter based on correct information. The proposed portfolio was appropriate for Mr E's assessed risk profile, the transfer offered clear financial value with lower charges and higher projected value at age 75, and the recommendation was consistent with FCA 2008 guidance on pension switching. No evidence of negligence or mis-advice was identified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website