Not upheld: unsuitable advice and failure to provide ongoing services; excessive commission complaint against OpenWork Limited

Decision detail

Summary

Mr B complained that OpenWork Limited, through adviser MT, gave unsuitable pension and life insurance advice and took excessive commission without providing contractual ongoing services. The ombudsman found that the actual adviser was AF (not MT), the pension recommendation was suitable given Mr B's circumstances and risk profile, and no contractual obligation for annual reviews existed—only an open invitation. The life insurance was not sold by Openwork. Commission taken without ongoing advice was lawful under pre-2013 RDR legislation. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the pension recommendation was suitable given Mr B had no existing pension provision, the contribution was affordable, the funds matched his adventurous risk profile, and charges were clearly disclosed. Critically, the recommendation letter contained only an open invitation to request reviews, not a contractual obligation to provide annual reviews. Prior to the 2013 Retail Distribution Review, ongoing commission could be taken without ongoing advice requirements. The life insurance was not sold by Openwork, so they bore no responsibility for its suitability. Mr B's belief that he overpaid based on current standards is not relevant to sales made decades ago under different regulatory frameworks.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website