Not upheld: Pension transfer advice complaint against Progeny Wealth Limited

Decision detail

Summary

Mr E complained that Progeny misled him about transferring two DB pensions, claiming he was told from 2017 that transfer values would only increase and that one scheme would be worth £700,000 by age 59/60. Mr E stated he accepted Progeny's advice to retain the schemes based on these assurances, but transfer values subsequently fell by approximately 38% (£323,000) by November 2022. The ombudsman found no evidence in contemporaneous documentation that Progeny guaranteed transfer values would only increase, and noted that Progeny explicitly stated in December 2021 that increases were never guaranteed. The advice to retain the schemes in 2020 and 2022 was found to be reasonable under FCA rules and Mr E's circumstances. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that whilst Progeny could have provided clearer explanations of how DB transfer values are calculated and the impact of economic changes, there was no evidence that Progeny guaranteed transfer values would only increase. The contemporaneous documentation from October and November 2020 meetings contained no mention of guaranteed increases or the £700,000 figure being guaranteed. Progeny's December 2021 response explicitly stated values were 'never a guarantee'. The advice to retain the DB schemes in both 2020 and 2022 was reasonable given FCA rules that transfers are not likely to be suitable, Mr E's cautious risk attitude, his low capacity for loss, and the availability of £400,000 in DC schemes to support expenditure. The ombudsman noted that whilst Mr E had a clear retirement plan, Progeny was obliged to provide suitable advice rather than simply execute his wishes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website