Partially upheld: Pension transfer advice complaint against Pension Works Limited
Financial Ombudsman decision DRN-3977658 of 2024-03-28T00:00:00+00:00. Pension transfer advice complaint against Pension Works Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-3977658 |
|---|---|
| Decision date | 2024-03-28T00:00:00+00:00 |
| Firm | Pension Works Limited |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Partially upheld |
| Remedy | PWL directed to pay Mr W £150 compensation for stress and frustration caused by poor service in April 2022 regarding the lack of clarity and response about the abridged advice summary form. No compensation awarded for the difference in CETV values. |
Summary
Mr W complained to PWL about delays in receiving defined benefit transfer advice that caused him to miss the original CETV expiry date of 2 May 2022, resulting in a new CETV approximately £40,000 lower. PWL's process required initial free advice followed by chargeable full advice. Although the ombudsman found PWL caused some delays (including failing to locate the original letter of authority promptly and not following up with pension providers quickly enough), the ombudsman concluded that full advice could not have been completed before the CETV expiry date regardless. However, the ombudsman found PWL caused unnecessary stress and frustration by failing to respond to Mr W's requests for clarification about signing the abridged advice summary form in April 2022, when Mr W was travelling with limited communication access. The complaint was partially upheld with £150 compensation awarded for the service failure, but no compensation for the financial loss regarding the lower CETV.
The Ombudsman's reasoning
The ombudsman found that while PWL did cause some delays (failing to locate the original LOA promptly and not following up with providers quickly enough), these delays would not have enabled full advice to be completed before the 2 May 2022 CETV expiry date. The ombudsman considered that the information PWL requested from the four pension arrangements was reasonable and necessary for compliant DB transfer advice, and that the time taken for full advice was not unreasonable given Mr W's circumstances. However, the ombudsman found that PWL caused unnecessary stress and frustration by failing to respond to Mr W's requests for clarification about signing the abridged advice summary form in April 2022, particularly given that Mr W was travelling with limited communication access and had already provided the fee agreement.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Pension Works Limited, all decisions | 14 | 29% |
| Pension transfer advice, all decisions | 7,542 | 54% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website