Upheld: Account administration errors complaint against Quai Investment Services Limited
Financial Ombudsman decision DRN-5742945 of 2025-09-26T00:00:00+00:00. Account administration errors complaint against Quai Investment Services Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5742945 |
|---|---|
| Decision date | 2025-09-26T00:00:00+00:00 |
| Firm | Quai Investment Services Limited |
| Product | Pension |
| Claim type | Account administration errors |
| Outcome | Upheld |
| Remedy | Quai must: (1) Provide Mrs D with a full transaction listing from 1 January 2024 to date in an easy-to-read format with clear descriptions of each transaction; (2) Calculate what the May 2024 contribution would have been worth on the date of final decision if correctly passed to the platform provider on 23 May 2024, including investment returns from 23 May 2024 to the date of decision; (3) Compare this calculated position with the actual value of the May 2024 contribution as at the date of final decision; (4) If a loss is shown, pay redress into Mrs D's pension plan if possible (allowing for charges and tax relief), or as a lump sum with a 15% notional reduction for income tax if pension payment is not possible; (5) Pay £200 for distress and inconvenience (unless already paid); (6) Add 8% per annum simple interest if payment is not made within 28 days of Mrs D's acceptance; (7) Provide clear calculations to Mrs D. |
Summary
Mrs D held a Self-Invested Personal Pension (SIPP) with Intelligent Money, which was acquired by Quai on 28 May 2024. Quai received Mrs D's May 2024 pension contribution of £833.33 on 20 May 2024 but failed to pass it to her platform provider promptly, unlike its established practice for previous months. The contribution was not paid to the platform provider until 18 October 2024, approximately 5 months later. Mrs D's IFA calculated that only £795.66 was paid, leaving a shortfall of £37.67 plus lost investment returns. When Mrs D transferred her pension to provider T in December 2024, the situation remained unclear. The ombudsman upheld the complaint, finding that Quai had failed to provide clear information about the correction of its mistake and had caused Mrs D a demonstrable loss. Quai was ordered to provide clear transaction information, calculate the loss including investment returns from 23 May 2024 to the date of decision, and pay appropriate compensation.
The Ombudsman's reasoning
The ombudsman found that Quai received Mrs D's May 2024 contribution on 20 May 2024 but failed to pass it to the platform provider promptly, contrary to its established practice of processing contributions within one working day. The transaction data provided by Quai was unclear and incomplete, showing only a cash balance rather than all funds held. While Quai eventually paid £795.66 to the platform provider on 18 October 2024 (approximately 5 months late), this was after Mrs D had already transferred her pension to provider T. The ombudsman determined that Mrs D had suffered a loss of at least £37.67 plus investment returns that would have accrued from 23 May 2024 (when the contribution should have been invested) to the date of decision. Quai's failure to provide clear information about the correction of its mistake, combined with the significant delay in processing the contribution, constituted a breach of its obligations.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Quai Investment Services Limited, all decisions | 12 | 100% |
| Account administration errors, all decisions | 25,844 | 25% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website