Not upheld: Pension transfer advice complaint against HARBOUR ROCK CAPITAL LIMITED

Decision detail

Summary

Mr T, age 59, sought to transfer his occupational DB pension (CETV £78,256-£103,430) to a SIPP to access the entire value as a lump sum for paying off his £30,000 mortgage, home improvements, and a holiday. HR provided abridged and full advice strongly recommending against the transfer, citing loss of valuable guaranteed benefits, higher tax implications, and availability of alternatives. Despite this advice, Mr T proceeded as an insistent client, signing declarations confirming his understanding of what he would lose. The transfer completed in November 2023. Mr T later complained that HR's advice was unsuitable and its insistent client process was deficient. The ombudsman found HR's process had significant failings in introducing the insistent client option too early and undermining its own advice, but concluded that Mr T would have proceeded regardless given his predetermined objective, consistency throughout the process, and resistance to alternatives.

The Ombudsman's reasoning

The ombudsman found that while HR's process had significant failings—particularly in introducing the insistent client option too early and undermining its own advice—Mr T would have proceeded with the transfer regardless. The ombudsman noted that Mr T approached HR with a clear predetermined goal to access his entire DB pension as a lump sum, was consistent in this objective throughout, and appeared resistant to alternatives. The ombudsman found that Mr T's objectives (mortgage payoff, home improvements, holiday) were non-essential wants rather than necessities, and that he had viable alternatives (early retirement with actuarial reduction, additional borrowing, or savings) which he himself rejected. The ombudsman concluded that even with a more robust process, Mr T would have insisted on proceeding, and therefore suffered no loss from HR's procedural failings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website