Upheld: General financial advice complaint against Profile Financial Solutions Limited
Financial Ombudsman decision DRN-4440622 of 2024-01-12T00:00:00+00:00. General financial advice complaint against Profile Financial Solutions Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-4440622 |
|---|---|
| Decision date | 2024-01-12T00:00:00+00:00 |
| Firm | Profile Financial Solutions Limited |
| Product | Pension |
| Claim type | General financial advice |
| Outcome | Upheld |
| Remedy | PFS must refund all ongoing advice fees taken from Mr S's pension and calculate lost investment returns on each deducted fee based on actual pension investment performance from date of deduction to date of acceptance. Compensation should be paid into the pension if possible (allowing for charges and tax relief), or as a lump sum with 15% notional tax reduction if direct payment required. PFS must also pay £250 for distress and inconvenience. Interest at 8% per year simple applies if payment not made within 28 days. |
Summary
Mr S complained that PFS charged him annual adviser fees of 0.4% without providing the agreed ongoing service. PFS had promised monthly fund monitoring, yearly reviews, yearly updates on holdings, and ongoing support. The ombudsman found that PFS failed to conduct any meaningful annual reviews from 2018-2021, with only single attempted contacts rather than actual service delivery. Other promised services were either not evidenced or duplicated by the pension provider. PFS continued charging and contacting Mr S even after he clearly expressed his wish to cancel in May 2022. The ombudsman upheld the complaint and ordered PFS to refund all ongoing advice fees plus lost investment returns, plus £250 for distress and inconvenience, finding PFS had agreed to provide a full service for a full fee but failed to deliver.
The Ombudsman's reasoning
The ombudsman applied FCA regulatory standards requiring firms to have robust systems ensuring clients receive the ongoing service they pay for. PFS failed to provide any meaningful annual reviews in any year from 2018-2021, with only single attempted contacts or mailshots rather than actual service delivery. The other promised services (monthly monitoring, yearly updates, ongoing support) were either not evidenced or duplicated services provided by the pension provider. The client agreement did not itemise fees for individual service elements, so PFS cannot now claim partial fees are justified. Mr S clearly expressed his wish to cancel in May 2022, so charges from that point onwards were unreasonable. The ombudsman concluded PFS agreed to provide a full service for a full fee but failed to deliver any meaningful service, warranting full refund of all fees plus lost investment returns.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Profile Financial Solutions Limited, all decisions | 22 | 46% |
| General financial advice, all decisions | 4,578 | 36% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website