Upheld: Pension transfer advice complaint against Union Bancaire Privée (UK) Limited
Financial Ombudsman decision DRN-5464371 of 2025-06-03T00:00:00+00:00. Pension transfer advice complaint against Union Bancaire Privée (UK) Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5464371 |
|---|---|
| Decision date | 2025-06-03T00:00:00+00:00 |
| Firm | Union Bancaire Privée (UK) Limited |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Upheld |
| Remedy | 1) £250 award for trouble and inconvenience; 2) Calculate actual performance of AJ Bell SIPP from transfer date to settlement date; 3) Calculate notional performance of Ascentric SIPP had it remained in place; 4) If notional value exceeds actual value, pay the difference as compensation into Mr F's pension plan (adjusted for charges, tax relief, and marginal tax rate) or directly to Mr F if pension payment not possible; 5) Provide clear calculation details to Mr F; 6) UBP to bear costs of obtaining information from Ascentric if necessary. |
Summary
Mr F and his wife sought to consolidate their pensions under one manager with UBP. Mr F transferred his Ascentric SIPP to UBP's management via AJ Bell in May 2023, but his wife's SIPP could not be transferred due to its specific characteristics, meaning the consolidation objective was not achieved. UBP conceded it failed to conduct proper due diligence at the outset and did not arrange simultaneous transfers, which would have identified the problems earlier. The ombudsman upheld the complaint and ordered UBP to calculate compensation based on the difference between the actual performance of the transferred SIPP and the notional performance the original SIPP would have achieved, plus £250 for trouble and inconvenience.
The Ombudsman's reasoning
The ombudsman found that UBP's early failings in not conducting proper due diligence and not arranging simultaneous transfers meant the consolidation objective could not be achieved. Had proper advice and due diligence occurred at the outset, or had both transfers been managed simultaneously, Mr F would likely have withdrawn his SIPP from the transfer process. The ombudsman endorsed the investigator's approach of comparing actual AJ Bell SIPP performance against the notional value of the Ascentric SIPP had it remained in place, as this puts Mr F in the position he would have been in absent the transfer. Transfer-related fees are covered within the performance calculations. Future transfer costs are Mr F's discretionary decision and not UBP's responsibility.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Union Bancaire Privée (UK) Limited, all decisions | 4 | 50% |
| 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