Upheld: unsuitable pension transfer advice; failure to provide proper cost comparison; inadequate justification for transfer complaint against Sirius Wealth Management LLP
Financial Ombudsman decision DRN-6273381 of 2026-04-21T00:00:00+00:00. unsuitable pension transfer advice; failure to provide proper cost comparison; inadequate justification for transfer complaint against Sirius Wealth Management LLP. Outcome: Upheld.
Decision detail
| Reference | DRN-6273381 |
|---|---|
| Decision date | 2026-04-21T00:00:00+00:00 |
| Firm | Sirius Wealth Management LLP |
| Product | pension |
| Claim type | unsuitable pension transfer advice; failure to provide proper cost comparison; inadequate justification for transfer |
| Outcome | Upheld |
| Remedy | Sirius Wealth Management LLP must: (1) Compare the performance of Miss L's investment with the notional value had it remained with the previous provider as at the decision date; (2) If the notional value is greater, pay compensation equal to the loss plus 8% simple interest per annum from the decision date to settlement (if not settled within 56 days); (3) Pay compensation into Miss L's pension plan if possible, allowing for charges and tax relief, or directly to Miss L with a 15% reduction to account for notional tax (assuming 20% basic rate tax on 75% of compensation after tax-free lump sum); (4) Pay £250 for distress and inconvenience; (5) Provide clear calculation details to Miss L. |
Summary
Miss L complained that Sirius Wealth Management LLP wrongly advised her to transfer her personal pension to a flexi-access drawdown pension in 2021. Miss L was in her mid-fifties with no immediate need to access pension benefits, had multiple income sources, and was already invested in a managed fund aligned to her balanced risk profile. Sirius's suitability report failed to properly compare the charges of the existing and new schemes, and a Pension Switch Report created after the advice showed the new scheme would result in lower projected retirement values and higher overall costs. The ombudsman found the transfer was not in Miss L's best interests and upheld her complaint, ordering Sirius to calculate compensation based on the difference between the actual and notional values of her investment, plus £250 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Sirius failed to provide suitable advice under FCA regulations. Although Miss L signed a Client Agreement acknowledging fees would be charged, this did not cure the fundamental unsuitability of the transfer. The suitability report lacked a proper comparison of charges between the existing and new pension schemes, contrary to FCA guidance. The Pension Switch Report (created after the advice) showed the new scheme would deliver lower projected retirement values with higher overall costs. Miss L's objectives for the transfer appeared generic rather than specific to her circumstances, and she had no immediate need for the flexibility offered by the new scheme given she was 10 years from retirement and already invested in a managed fund aligned to her risk profile. The benefits of switching were limited in the context of the overall costs, and there was no strong case that Miss L would be better off at retirement by switching.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Sirius Wealth Management LLP, all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website