Upheld: Pension transfer advice complaint against Profile Financial Solutions Limited
Financial Ombudsman decision DRN-5306765 of 2025-07-29T00:00:00+00:00. Pension transfer advice complaint against Profile Financial Solutions Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5306765 |
|---|---|
| Decision date | 2025-07-29T00:00:00+00:00 |
| Firm | Profile Financial Solutions Limited |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Upheld |
| Remedy | Profile must compare the actual value of the proportion of Mr W's Scottish Widows PPP originating from the Fidelity pension with the notional value had it remained with Fidelity until the August 2023 transfer to Aegon. If actual value is less than notional value, compensation is payable. Profile should pay compensation into Mr W's pension plan (adjusted for charges and tax relief) or, if not possible, pay directly to Mr W with a 20% reduction for basic rate tax (or 15% if tax-free lump sum available). If Fidelity cannot provide notional value, Profile must use the FTSE UK Private Investors Income Total Return Index as benchmark. Profile must provide a simple calculation showing how figures were determined. |
Summary
Mr W complained that Profile Financial Solutions Limited unsuitably advised him to transfer his Fidelity employer-sponsored pension (£42,725) and Equitable Life PPP (£34,455) to a Scottish Widows PPP in 2016 following a cold call. Profile charged 1.75% plus £450 upfront and 0.4% annually, resulting in higher overall charges than the Fidelity plan. The ombudsman upheld the complaint, finding the transfer was unsuitable because the Scottish Widows plan offered similar features (lifestyling, fund choices) to Fidelity with no guarantee of better performance, the higher charges were not justified, and ongoing advice services were not genuinely required or wanted by Mr W, who was 20+ years from retirement. The ombudsman directed Profile to calculate losses by comparing the actual value of the transferred funds to their notional value had they remained with Fidelity, and to pay compensation adjusted for tax and charges.
The Ombudsman's reasoning
The ombudsman applied the FSA's 2009 checklist for unsuitable pension switches. The transfer failed on multiple grounds: (1) initial costs and ongoing charges were higher without good reason; (2) the Fidelity plan already offered the required features (lifestyling, fund choices, investment management) with no guarantee of better performance; (3) ongoing advice was not clearly needed or wanted by Mr W, as evidenced by his failure to engage with reviews after 2017 and the closed-end nature of the fact find questions; (4) Mr W was 20+ years from retirement, making flexible benefit access irrelevant; (5) consolidation alone did not justify higher charges when the Fidelity plan already provided online access and simple administration. The ombudsman concluded the only new thing the transfer provided was Profile's advice, which was not actively sought and did not justify years of higher charges.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Profile Financial Solutions Limited, all decisions | 22 | 46% |
| Pension transfer advice, all decisions | 7,542 | 54% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website