Upheld: General financial advice complaint against Radiant Financial Planning Limited
Financial Ombudsman decision DRN-5159001 of 2024-12-06T00:00:00+00:00. General financial advice complaint against Radiant Financial Planning Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5159001 |
|---|---|
| Decision date | 2024-12-06T00:00:00+00:00 |
| Firm | Radiant Financial Planning Limited |
| Product | Pension |
| Claim type | General financial advice |
| Outcome | Upheld |
| Remedy | Radiant must calculate the loss in value of Mr T's pension due to fees taken in 2021 and 2023, including lost investment returns on those fees based on Mr T's actual investment strategy (or FTSE UK Private Investors Income Total Return Index if actual strategy information unavailable), calculated from the date fees were deducted to the date Mr T accepts the decision. Compensation should be paid into the pension if possible, or as a lump sum to Mr T with a 15% notional tax reduction if pension payment is not possible. Payment must be made within 28 days, with 8% per annum simple interest if delayed. |
Summary
Mr T engaged Radiant (formerly CWB) in 2019 for retirement planning and paid ongoing annual review fees. Radiant conducted reviews in 2020 but failed to complete reviews in 2021 and 2023, despite charging fees for those years. Although Radiant attempted to contact Mr T to schedule reviews, the ombudsman found that merely offering a service does not constitute delivery of the service. The ombudsman upheld Mr T's complaint and required Radiant to refund the 2021 and 2023 fees plus lost investment returns, with compensation calculated to restore the pension fund to its position had the fees not been deducted.
The Ombudsman's reasoning
The ombudsman found that Radiant's fee agreement clearly committed to providing annual review meetings and ongoing monitoring services. While Radiant attempted to contact Mr T in 2021 and 2023, merely offering a service is not the same as providing it. The FCA rules require that ongoing adviser charges must be in respect of an ongoing service that is actually provided, not simply offered. Since no reviews were completed in 2021 and 2023, no investment performance or personal circumstances were reviewed, and no reports were sent to Mr T, the service was not delivered despite fees being charged. Therefore, Radiant must compensate Mr T for the fees taken in those two years plus lost investment returns.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Radiant Financial Planning Limited, all decisions | 5 | 50% |
| General financial advice, all decisions | 4,848 | 36% |
| Pension, all decisions | 15,602 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website