Partially upheld: delay in payment of tax-free cash; failure to advise on alternative options; administrative error complaint against AFH Independent Financial Services Limited trading as AFH Wealth Management
Financial Ombudsman decision DRN-6220809 of 2026-04-22T00:00:00+00:00. delay in payment of tax-free cash; failure to advise on alternative options; administrative error complaint against AFH Independent Financial Services Limited trading as AFH Wealth Management. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6220809 |
|---|---|
| Decision date | 2026-04-22T00:00:00+00:00 |
| Firm | AFH Independent Financial Services Limited trading as AFH Wealth Management |
| Product | pension |
| Claim type | delay in payment of tax-free cash; failure to advise on alternative options; administrative error |
| Outcome | Partially upheld |
| Remedy | AFH must: (1) Calculate TFC from Standard Life transfer (25% of £27,228.47) as if paid 17 January 2025 with 8% simple interest until 4 April 2025; (2) Add 25% of Fidelity transfer received 27 March 2025; (3) If total exceeds actual TFC paid, pay shortfall with 8% simple interest from 5 April 2025 to settlement; (4) Pay 8% simple interest on actual TFC paid between 4-17 April 2025; (5) Calculate notional fund value if only 75% of net transfers had been invested and compare to current value, compensating any loss (preferably into pension plan with tax adjustment, or as lump sum with 15% notional tax reduction); (6) Pay £400 compensation for distress and inconvenience; (7) Provide simple calculation breakdown to Mr P; (8) Provide tax deduction certificate for interest if requested. |
Summary
Mr P, a retired individual, instructed AFH to arrange transfers of his Standard Life and Fidelity pensions to a SIPP to access tax-free cash urgently needed to assist his daughter. Standard Life transferred funds on 10 January 2025 and Fidelity on 27 March 2025, but AFH delayed paying the TFC until 17 April 2025, resulting in a lower payment than expected due to market movements. Mr P discovered that Fidelity could have paid TFC before completing the transfer. The ombudsman upheld the complaint in part, ordering AFH to calculate TFC as if paid within five working days of each transfer receipt with 8% interest, pay any shortfall with interest, and provide £400 compensation for distress and inconvenience, but rejected claims for fee refunds and full investment loss compensation.
The Ombudsman's reasoning
The ombudsman found that while transfer completion timescales were outside AFH's control, the delay in paying TFC once transfers were received was avoidable and within AFH's control. AFH's process of waiting until all transfers were received before processing TFC was not communicated to Mr P, who had clearly expressed urgency. The ombudsman rejected claims for refund of agreed fees and full investment losses, as the compensation methodology (calculating TFC as if paid within five working days of each transfer receipt with 8% interest) adequately compensates for the delay. Market movements after the error occurred would have affected the funds regardless. The ombudsman considered £400 compensation for distress and inconvenience appropriate given Mr P's urgent need for the funds.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AFH Independent Financial Services Limited trading as AFH Wealth Management, all decisions | 2 | 25% |
Source
Read the original decision on the Financial Ombudsman Service website