Partially upheld: Pension transfer advice complaint against JAMES HAY ADMINISTRATION COMPANY LIMITED
Financial Ombudsman decision DRN-6080092 of 2026-01-15T00:00:00+00:00. Pension transfer advice complaint against JAMES HAY ADMINISTRATION COMPANY LIMITED. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6080092 |
|---|---|
| Decision date | 2026-01-15T00:00:00+00:00 |
| Firm | JAMES HAY ADMINISTRATION COMPANY LIMITED |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Partially upheld |
| Remedy | James Hay must: (1) Calculate loss by obtaining notional value of pension fund as if fully invested from 31 March 2025 and subtracting current actual value, or use FTSE UK Private Investors Income Total Return Index as benchmark if notional value unavailable; (2) Pay compensation into pension plan if possible, allowing for charges and tax relief, or as lump sum with 15% notional tax reduction if direct payment required; (3) Pay £250 for distress and inconvenience (unless already paid); (4) Revisit loss calculation to ensure correct Index version used; (5) Offer to calculate loss based on actual trades made if Mr J provides trading details. |
Summary
Mr J complained that James Hay caused delays in transferring his SIPP to a new provider, preventing him from trading during a period of rising markets (October 2024 to February 2025) and causing financial loss. The ombudsman found that while James Hay did cause delays after 30 December 2024, Mr J could not claim losses from October 2024 onwards because James Hay was unaware of the transfer until 25 November 2024, the transfer was in-specie (protecting his investments), and Mr J had opportunities to pause the process. The relevant delay period was determined to be 31 March 2025 to 8 May 2025, during which the Index fell, suggesting no loss on the cash element. The ombudsman upheld the complaint in part, ordering James Hay to calculate any loss using actual trades or an Index benchmark, pay compensation into the pension plan if possible, and pay £250 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that while James Hay caused delays in the transfer process, Mr J cannot claim losses dating back to October 2024 because: (1) James Hay was not aware of the transfer until 25 November 2024; (2) Mr J made the decision to transfer during a rising market and was protected by the in-specie nature of the transfer; (3) Mr J had an opportunity to pause when discharge forms were returned incomplete in December 2024; and (4) the transfer was only initiated with James Hay on 30 December 2024. The relevant period for loss calculation is 31 March 2025 (when transfer should have been completed per TRIG guidance) to 8 May 2025 (when it actually completed). The ombudsman rejected using the period from October 2024 to February 2025 as Mr J cannot specify what trades he would have made, and the Index benchmark for the actual delay period (31 March to 8 May 2025) showed a fall, indicating no loss on the cash element. However, James Hay should revisit the calculation to ensure the correct Index version was used and should offer to calculate loss based on actual trades if Mr J provides details.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| JAMES HAY ADMINISTRATION COMPANY LIMITED, all decisions | 9 | 33% |
| 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