Upheld: Pension transfer advice complaint against Quai Investment Services Limited
Financial Ombudsman decision DRN-6034545 of 2025-12-19T00:00:00+00:00. Pension transfer advice complaint against Quai Investment Services Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6034545 |
|---|---|
| Decision date | 2025-12-19T00:00:00+00:00 |
| Firm | Quai Investment Services Limited |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Upheld |
| Remedy | 1. Quai to calculate compensation for investment loss by: (a) determining the value that would have been realised on 15 October 2024 under the proper timeline; (b) obtaining actual values from AJ Bell for what was transferred on 10 January 2025 and the date of final decision; (c) calculating notional values if funds had been invested in the specified portfolio on the specified dates; (d) determining loss as the difference between notional and actual values as at 10 January 2025, updated to final decision date. 2. Quai to pay additional £52.50 to compensate for 15% tax impact on the £350 distress payment that was incorrectly paid into the SIPP. 3. Quai to ensure any future residual investment proceeds are sent to AJ Bell without delay. 4. Interest at 8% per annum simple to apply to any amounts not paid within 28 days of Mrs H's acceptance. |
Summary
Mrs H complained about a 5-month delay in transferring her SIPP worth over £900,000 from Intelligent Money (administered by Quai following administration) to AJ Bell between July and December 2024. The transfer initially proceeded as an in specie transfer but was changed to cash transfer on 25 September 2024 after two months of delays caused by Quai's administrative difficulties and an error in Mrs H's date of birth. The cash transfer then took a further 74 days to complete, arriving on 13 December 2024 instead of the expected 22 October 2024. The ombudsman upheld the complaint, finding Quai should have completed the cash transfer by 22 October 2024 using industry-standard timescales, and ordered compensation for the resulting investment loss. The ombudsman also required Quai to pay an additional £52.50 to compensate for tax implications arising from Quai incorrectly paying the distress compensation into Mrs H's SIPP rather than as cash.
The Ombudsman's reasoning
The ombudsman found that while Quai faced genuine challenges following the administration takeover on 28 May 2024, by late September 2024 when Mrs H requested a cash transfer, there was less excuse for continued delays. The ombudsman applied TRIG guidelines as good industry practice (not mandatory rules) and FCA requirements for transfers to happen within reasonable time and efficiently. For the in specie transfer phase (July-September), the ombudsman allowed some latitude due to Quai's recent acquisition and the date of birth error, but found the two-month delay excessive. For the cash transfer phase (September-December), the ombudsman determined Quai should have completed the transfer by 22 October 2024 using a two-working-day standard per step, accounting for the third-party custodian involvement and large transfer size. The actual 13 December arrival represented a 52-day delay. The ombudsman rejected Quai's argument that AJ Bell's errors were responsible, finding Quai should have identified the date of birth issue earlier. The ombudsman also found the distress payment should have been paid as cash rather than credited to the SIPP, creating unintended tax consequences.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Quai Investment Services Limited, all decisions | 12 | 100% |
| 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