Partially upheld: Pension transfer advice complaint against WPS ADVISORY Ltd
Financial Ombudsman decision DRN-5925474 of 2025-11-05T00:00:00+00:00. Pension transfer advice complaint against WPS ADVISORY Ltd. Outcome: Partially upheld.
Decision detail
| Reference | DRN-5925474 |
|---|---|
| Decision date | 2025-11-05T00:00:00+00:00 |
| Firm | WPS ADVISORY Ltd |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Partially upheld |
| Remedy | WPS Advisory Ltd must: (1) Calculate the difference between the value of Mr Z's current self-managed pension plan as at the date of decision and its notional value had the transfer been made to the self-managed provider on the date funds were transferred to Aviva, accounting for 15% notional tax deduction; (2) Pay any loss to Mr Z's pension plan if possible, or directly to Mr Z if not; (3) Pay £350 compensation for distress and inconvenience caused by the Aviva transfer; (4) Make payment within 28 days with 8% simple interest per annum if delayed. |
Summary
Mr Z complained that WPS Advisory Ltd should refund its £1,250 advice fee for facilitating a pension transfer, arguing the transfer was unsuitable. WPS initially recommended transferring Mr Z's Royal London personal pension to an Aegon SIPP invested in a Legal & General fund. Mr Z cancelled this transfer after experiencing customer service issues with Aegon. WPS then recommended transferring to an Aviva SIPP with the same fund, but this turned out to be a non-self-managed plan requiring ongoing WPS involvement, contrary to Mr Z's stated requirements. Mr Z subsequently transferred his pension to a self-managed provider at his own expense. The ombudsman partially upheld the complaint, finding WPS entitled to retain the fee for the suitable Aegon recommendation but liable for compensation due to the unsuitable Aviva transfer, ordering WPS to calculate and pay any financial loss plus £350 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that WPS's initial recommendation to transfer to Aegon was suitable for Mr Z's requirements and met his objective of obtaining a self-managed pension. Although Mr Z cancelled this transfer due to customer service issues with Aegon (inability to log in), this was not WPS's fault and the firm was entitled to retain the advice fee for work properly completed. However, WPS's subsequent recommendation to transfer to Aviva was unsuitable because it failed to meet Mr Z's stated requirement for a self-managed pension, as it would have required ongoing WPS involvement. WPS offered to rectify this by facilitating a transfer to an appropriate self-managed provider at no additional cost, which was a reasonable remedial offer. The ombudsman determined that Mr Z should be compensated for the financial loss caused by the incorrect Aviva transfer and for the distress and inconvenience caused.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| WPS ADVISORY Ltd, all decisions | 29 | 41% |
| 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