Upheld: General financial advice complaint against Fairstone Wealth Management Limited
Financial Ombudsman decision DRN-5434818 of 2025-03-28T00:00:00+00:00. General financial advice complaint against Fairstone Wealth Management Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5434818 |
|---|---|
| Decision date | 2025-03-28T00:00:00+00:00 |
| Firm | Fairstone Wealth Management Limited |
| Product | Pension |
| Claim type | General financial advice |
| Outcome | Upheld |
| Remedy | 1. Refund all ongoing advice fees from June 2020 until deductions ceased, with compound interest calculated monthly using either actual cash interest rates from Aviva or Bank of England base rate as benchmark. 2. Pay refund and interest into Mr C's pension if possible without conflicting with protections/allowances, otherwise pay as lump sum with 15% notional tax deduction (25% tax-free, 75% at 20% rate). 3. Pay £200 compensation for distress and inconvenience directly to Mr C. 4. All payments within 28 days, with 8% simple interest per annum if delayed. 5. Provide tax deduction certificate if requested. |
Summary
Mr C complained about poor service from Fairstone regarding his pension after his long-standing adviser retired in late 2020. Mr C received no contact from Fairstone for approximately three years despite paying approximately £250 monthly for ongoing review services, receiving only an inaccurate report in July 2023. The ombudsman found Fairstone failed to meet its contractual obligation to provide ongoing reviews, as it could not have accurately reviewed investment suitability without updating Mr C's circumstances, needs, objectives and attitude to risk through direct conversation. The ombudsman upheld the complaint and ordered Fairstone to refund all fees from June 2020 onwards with compound interest, pay £200 compensation, and ensure payments are made into Mr C's pension where possible.
The Ombudsman's reasoning
Fairstone failed to meet its contractual obligation to provide ongoing reviews of Mr C's pension arrangements. The ombudsman found no persuasive evidence that Fairstone had conversations with Mr C after his previous adviser retired in 2020 to update his needs, circumstances, objectives and attitude to risk - which are essential to accurately review investment suitability. Additionally, there was no persuasive evidence that reports created in 2021 and 2022 were actually shared with Mr C at the time. Therefore, Fairstone did not provide the level of service it ought to have done for the fees it charged.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Fairstone Wealth Management Limited, all decisions | 6 | 58% |
| 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