Veste

Partially upheld: General financial advice complaint against Profile Financial Solutions Limited

Financial Ombudsman decision DRN-5691810 of 2025-07-18T00:00:00+00:00. General financial advice complaint against Profile Financial Solutions Limited. Outcome: Partially upheld.

Decision detail

ReferenceDRN-5691810
Decision date2025-07-18T00:00:00+00:00
FirmProfile Financial Solutions Limited
ProductPension
Claim typeGeneral financial advice
OutcomePartially upheld
RemedyPFSL must refund: (1) 100% of fees for the 2024 annual review that was not provided; (2) 50% of fees for ongoing advice in 2022 and 2023, reflecting that some service was provided but not in line with what was agreed. All amounts should be adjusted for growth as if fees had remained invested, calculated from date of deduction to date of final decision. Compensation should be paid into the pension plan if possible with adjustment for charges and tax relief, or as a lump sum to Mr S with 20% notional reduction for income tax if pension payment not possible.

Summary

Mr S consolidated six private pensions with PFSL in 2019 and paid for ongoing annual advice and monitoring. PFSL initially provided adviser-led telephone reviews in 2020 and 2021 as promised, but from 2022 onwards switched to providing only automated advice without telephone reviews, while continuing to collect fees. Mr S was unaware this change had occurred and believed he was receiving the adviser-led service he had agreed to pay for. PFSL continued collecting fees through May 2024 but failed to provide the annual review due in April 2024. Although the ombudsman found PFSL's investment recommendations were suitable throughout, it upheld the complaint in part because PFSL failed to deliver the service it had promised, particularly in 2022, 2023, and 2024.

The Ombudsman's reasoning

The ombudsman found that while PFSL's investment recommendations were suitable based on Mr S's attitude to risk and circumstances at each review point, PFSL failed to deliver the ongoing advice service it had promised. PFSL explicitly told Mr S in 2019 that he would receive annual telephone reviews with an adviser, but from 2022 onwards provided only automated advice without adviser-led telephone reviews. Although PFSL argued this was permitted under FCA regulations and consistent with its digital service model, the ombudsman determined that what matters is whether PFSL delivered what it told Mr S he would receive. The ombudsman noted that PFSL acknowledged it could have been more proactive and that Mr S was unaware he was receiving automated advice. For 2024, PFSL continued collecting fees but provided no service at all, even though it continued to act for Mr S until May 2024.

How this compares

GroupDecisionsUphold rate
Profile Financial Solutions Limited, all decisions2246%
General financial advice, all decisions4,57836%
Pension, all decisions15,57947%

Source

Read the original decision on the Financial Ombudsman Service website