Upheld: Service failures generally complaint against Progeny Wealth Limited
Financial Ombudsman decision DRN-5053007 of 2024-09-30T00:00:00+00:00. Service failures generally complaint against Progeny Wealth Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5053007 |
|---|---|
| Decision date | 2024-09-30T00:00:00+00:00 |
| Firm | Progeny Wealth Limited |
| Product | Pension |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Progeny Wealth Ltd must refund: (1) 100% of fees charged for October-December 2023; (2) 25% of all other fees charged during the period Progeny managed Mr S's portfolio; and (3) pay £200 compensation for distress and inconvenience |
Summary
Mr S complained to the Financial Ombudsman Service about poor service from Progeny Wealth Ltd following their takeover of his long-standing advisor JMG in 2022. After signing a new client agreement requiring annual reviews, Mr S expected to receive the same service level as he had for 25 years, including half-yearly reviews and accessible documentation formats. However, Progeny refused to provide review documentation in Mr S's preferred email and hard copy formats, instead insisting on their client portal, causing delays of up to three months. The ombudsman upheld the complaint, finding that while Progeny technically met contractual obligations, they failed to provide the full benefit of services by not accommodating Mr S's reasonable accessibility needs. The ombudsman ordered a 25% refund of all fees charged during the management period, plus 100% refund of fees improperly charged after Mr S disengaged in November 2023, and £200 compensation for distress and inconvenience.
The Ombudsman's reasoning
While Progeny strictly complied with the contractual requirement to provide annual reviews and made review meetings available, they failed to provide adequate service in the manner Mr S required. Although Progeny's preferred method of document delivery was via their client portal (which Mr S had signed to accept), Mr S made clear this format was unsuitable for him and requested email and hard copy delivery. Progeny and their advisors agreed to accommodate this request but failed to deliver documents in a timely manner or at all in some cases. Mr S paid fees for services but was denied the full benefit of those services due to Progeny's failure to resolve the documentation delivery issue despite acknowledging the problem. Additionally, Progeny improperly continued charging fees after Mr S had disengaged their services in November 2023.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Progeny Wealth Limited, all decisions | 6 | 42% |
| Service failures generally, all decisions | 32,767 | 33% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website