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

Decision detail

Summary

Mr F, aged 55 and self-employed, sought advice on his pensions with the objective of purchasing a flat for £110-125,000 without arranging a mortgage. HR recommended transferring his Zurich PPP to an Aegon SIPP and taking tax-free and taxable withdrawals totalling approximately £20,000 to supplement his £90,000 savings. Mr F complained that the advice was unsuitable, negligent, and caused losses due to inadequate consideration of alternatives, failure to assess his attitude to risk, and excessive fees. The ombudsman rejected the complaint, finding that HR properly assessed his circumstances and objectives, the transfer was necessary because Zurich could not provide flexible withdrawals, the investment recommendations were suitable given his overall pension provision including a defined benefit scheme, and Mr F received adequate information to make an informed decision.

The Ombudsman's reasoning

The ombudsman found that HR properly assessed Mr F's objectives and circumstances. The transfer to Aegon was justified because the Zurich plan could not facilitate the flexible withdrawals Mr F required while keeping funds in pension. The suitability report adequately explained the recommendations, alternatives, taxation implications, and investment risks. Given Mr F's overall pension provision including significant defined benefit scheme benefits, the 67% equity exposure in the recommended funds was not unreasonable despite his moderately cautious attitude to risk. Mr F was provided sufficient information to make an informed decision, his charges were disclosed and agreed, and there was no evidence he was vulnerable or unable to make financial decisions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website