Partially upheld: Pension transfer advice complaint against WPS ADVISORY Ltd

Decision detail

Summary

Mr R complained that WPS Advisory Ltd's delays in providing pension transfer advice caused him to miss the 23 March 2022 acceptance deadline for his defined benefits pension transfer value of £788,333, resulting in a financial loss of £278,517 when the transfer value was recalculated in December 2022. The ombudsman found that while WPS could have acted more promptly in gathering information and chasing outstanding details, this would not have resulted in a personal recommendation being issued before the deadline. The ombudsman reasoned that given the FCA's default position that pension transfers are unsuitable unless clearly in the client's best interests, WPS would likely have advised against the transfer. Since Mr R's DB pension remained preserved in the scheme, no financial loss was suffered. The complaint was partially upheld with £300 compensation awarded for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found that while WPS could have acted more promptly in chasing outstanding information and returning calls, this would not have resulted in a personal recommendation being issued before the 23 March 2022 deadline. The ombudsman noted that WPS was still in the information gathering stage as of 17 March 2022, and given the FCA's presumption that pension transfers are unsuitable unless clearly in the client's best interests, it was more likely than not that WPS would have advised against the transfer. Therefore, Mr R has not suffered a financial loss as his DB pension remains preserved in the scheme. However, compensation for distress and inconvenience was warranted due to the frustration and disappointment caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website