Upheld: inaccurate financial projections / flawed cash flow modelling complaint against Murphy Wealth Limited

Decision detail

Summary

Mr M complained that Murphy Wealth Limited provided inaccurate cash flow models as part of ongoing financial planning advice following his 2020 pension transfer. The models failed to reflect Mr M's reducing tax free cash entitlement after he began taking lump sums in 2021, a defect that persisted until March 2025. MWL acknowledged the error and provided corrected models showing Mr M's retirement plans remained on track. The ombudsman upheld the complaint, finding that while no financial loss occurred, the inaccurate information caused Mr M distress and inconvenience, warranting £500 compensation.

The Ombudsman's reasoning

Both parties agreed the cash flow models were inaccurate. The ombudsman determined that while Mr M's actual tax free cash entitlement was unaffected and his financial goals remained achievable even with corrected projections, the provision of inaccurate information caused him distress and inconvenience. Mr M was entitled to rely on accurate information from MWL, and the misrepresentation of his remaining tax free cash entitlement caused him concern about the impact on his retirement plans. Although MWL acted fairly in correcting the information once identified, the apology and corrective action alone did not adequately compensate for the distress caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website