Partially upheld: General financial advice complaint against Mattioli Woods Limited
Financial Ombudsman decision DRN-5991216 of 2025-12-02T00:00:00+00:00. General financial advice complaint against Mattioli Woods Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-5991216 |
|---|---|
| Decision date | 2025-12-02T00:00:00+00:00 |
| Firm | Mattioli Woods Limited |
| Product | Pension |
| Claim type | General financial advice |
| Outcome | Partially upheld |
| Remedy | MW must: (1) Refund OACs taken after February 2023 until date of transfer (April 2024) and pay returns calculated using FTSE UK Private Investors Income Total Return Index from date fees were taken to final decision date; (2) Refund £360 exit charge plus returns using same benchmark; (3) Provide calculation details in clear, simple format; (4) Pay compensation within 28 days of notification of acceptance; (5) Pay 8% per year simple interest if not paid within 28 days. |
Summary
Mr and Mrs P consolidated their pensions into a joint SIPP with Mattioli Woods in 2017, paying ongoing advice charges (OACs) for annual suitability reviews and discretionary fund management. Over five years, their SIPP achieved only 0.4% returns despite higher fees. In February 2024, they complained about the high fees relative to poor performance and alleged they did not receive promised six-monthly performance reviews or adequate advice about pension allowances. The ombudsman found that MW's agreement specified annual (not six-monthly) reviews, which were generally provided, but no review occurred after February 2023 despite OACs continuing until their April 2024 transfer. The ombudsman upheld the complaint in part, requiring MW to refund OACs charged after February 2023 plus returns, and to refund the £360 exit fee plus returns, but rejected complaints about investment suitability and performance.
The Ombudsman's reasoning
The ombudsman found that MW's Client Agreement specified annual reviews as part of the ongoing advice service, not six-monthly reviews. While MW provided six-monthly valuations as part of the DFM service, the core service for which OACs were charged was the annual suitability review. Annual reviews were provided in 2020, 2019 (late), 2021, 2022, and 2023. However, no review was provided after February 2023 despite OACs continuing to be charged until the April 2024 transfer. Since Mr and Mrs P made their intention to leave known in June 2023, it was unreasonable for MW to retain OACs charged after February 2023 when the service would not be provided. The ombudsman rejected complaints about investment performance and suitability, noting that performance was not guaranteed and investments were suitable for their stated risk appetite. The ombudsman found MW had adequately informed Mr P about carry forward pension allowances in the February 2020 Technical Appendix. The £360 exit fee should be refunded as MW was prepared to waive it from the outset, indicating it was not essential.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Mattioli Woods Limited, all decisions | 10 | 40% |
| General financial advice, all decisions | 4,578 | 36% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website