Upheld: General financial advice complaint against Curtis Banks Limited
Financial Ombudsman decision DRN-5041527 of 2024-12-18T00:00:00+00:00. General financial advice complaint against Curtis Banks Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5041527 |
|---|---|
| Decision date | 2024-12-18T00:00:00+00:00 |
| Firm | Curtis Banks Limited |
| Product | Pension |
| Claim type | General financial advice |
| Outcome | Upheld |
| Remedy | Curtis Banks must: (1) Calculate the financial loss by comparing actual value of divested funds on 29 November 2023 with notional value if divested on 25 March 2024; (2) Split any loss in the PSO proportion between Mr H and his ex-wife; (3) Pay Mr H's share of compensation into his pension plan (adjusted for tax relief and charges) or directly to him if pension payment not possible (with 20% tax reduction, or 15% if tax-free lump sum available); (4) Apply same process for ex-wife's loss calculation; (5) Provide clear, simple explanation of calculations; (6) Pay Mr H £200 for distress and inconvenience. |
Summary
Mr H complained about Curtis Banks' administration of a pension sharing order arising from his 2022 divorce. Curtis Banks divested pension assets on 29 November 2023 to split between Mr H and his ex-wife, but the ex-wife had not established a pension scheme to receive her share, which was not confirmed until 25 March 2024. The early divestment meant funds were held in cash for approximately four months without benefiting from capital growth. The ombudsman found Curtis Banks should not have implemented the PSO until all required documentation was received on 25 March 2024, and upheld the complaint, ordering financial loss compensation calculated on the difference between actual and notional values, plus £200 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Curtis Banks should not have implemented the PSO on 29 November 2023 because it had not received all three required information requirements at that date. The correct implementation date was 25 March 2024 when the ex-wife's pension scheme details were confirmed. By divesting assets prematurely, a large proportion of the pension was held in cash and did not benefit from capital growth, causing financial loss. The PSO is a legal document requiring correct implementation to ensure both parties receive the court-mandated share at the correct valuation date. The early divestment added to Mr H's distress during an already stressful divorce settlement process.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Curtis Banks Limited, all decisions | 54 | 50% |
| 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