Upheld: Service failures generally complaint against Curtis Banks Limited
Financial Ombudsman decision DRN-6131179 of 2026-02-16T00:00:00+00:00. Service failures generally complaint against Curtis Banks Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6131179 |
|---|---|
| Decision date | 2026-02-16T00:00:00+00:00 |
| Firm | Curtis Banks Limited |
| Product | Pension |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Curtis Banks Limited must: (1) Add interest to the increased rent payments at the rate applicable to the SIPP cash account from July 2024 to the date payments were actually made; (2) Add interest to that amount at the same rate from the date of payment to the date of settlement; (3) Pay £300 compensation in addition to the waived rent review fee of £462. |
Summary
Mr H complained that Curtis Banks Limited delayed a rent review on a property held within his SIPP by over 12 months, with the review due on 1 July 2024 but not completed until 25 July 2025. Curtis Banks did not contact Mr H until February 2025 and the process was further hindered by surveyor delays and Curtis Banks' own errors, including sending an incorrect rent memorandum. Mr H sought 8% simple interest on the delayed rental income of £8,000 plus compensation for time and trouble. Curtis Banks offered £300 compensation and waived the £462 rent review fee. The ombudsman upheld the complaint but rejected the 8% interest claim, finding that since the funds were held in a pension wrapper, the appropriate remedy was interest at the applicable SIPP cash account rate. The ombudsman found the total compensation of £762 fair given that some delays were caused by third parties beyond Curtis Banks' control.
The Ombudsman's reasoning
The ombudsman distinguished between loss of spending opportunity (where 8% simple interest applies) and loss of investment opportunity within a pension. Since the funds were held in a pension wrapper with no spending opportunity, 8% simple interest was not appropriate. The ombudsman examined Mr H's historical pattern of retaining rental increases in the SIPP cash account before making annual transfers to another plan. Despite Mr H's argument that he would have transferred more had additional funds been available, the ombudsman found that the rounded nature of transfers and Mr H's failure to transfer additional funds after receiving the backdated rent suggested he would have retained the increase in the cash account. Therefore, compensation based on the applicable SIPP cash interest rate was fair. For trouble and upset, the ombudsman found that while Curtis Banks caused delays, some were attributable to third parties. The total compensation of £762 (£300 plus £462 fee waiver) fell appropriately between FOS guidance bands for awards.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Curtis Banks Limited, all decisions | 54 | 50% |
| Service failures generally, all decisions | 32,767 | 33% |
| Pension, all decisions | 15,579 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website