Not upheld: unsuitable pension transfer advice and fee refund claim complaint against JKFS (UK) Limited
Financial Ombudsman decision DRN-6288055 of 2026-04-22T00:00:00+00:00. unsuitable pension transfer advice and fee refund claim complaint against JKFS (UK) Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6288055 |
|---|---|
| Decision date | 2026-04-22T00:00:00+00:00 |
| Firm | JKFS (UK) Limited |
| Product | pension |
| Claim type | unsuitable pension transfer advice and fee refund claim |
| Outcome | Not upheld |
| Remedy | JKFS (UK) Limited must undertake a redress calculation in line with FCA rules for calculating redress for non-compliant pension transfer advice, as detailed in Policy Statement PS22/13 and DISP App 4. The calculation should use the most recent financial assumptions and usual assumptions including Mr B's normal retirement age. If the calculation demonstrates a loss, JKFS must deal with matters as explained in PS22/13 and DISP App 4. JKFS must provide copies of the calculation to both Mr B and the Financial Ombudsman Service. |
Summary
Mr B received unsuitable advice from JKFS in 2022 to transfer his Defined Benefit pension to a personal pension arrangement. Following an independent review in 2025 confirming the advice was unsuitable, Mr B complained seeking a refund of the advice fees paid. JKFS offered to conduct a redress calculation using FCA methodology but Mr B rejected this, arguing the fee should be refunded separately because the advice was unsuitable. The ombudsman upheld JKFS's offer, finding that the FCA's prescribed redress calculation methodology is the fair and appropriate way to determine if Mr B suffered financial loss and to provide compensation, as it accounts for all charges including advice fees and seeks to restore him to the position he would have been in with suitable advice.
The Ombudsman's reasoning
The ombudsman reasoned that if the firm's conclusion is correct (that Mr B would have gone ahead regardless), then there is no fair basis for a fee refund since Mr B sought out and agreed to pay for the advice. However, the FCA's prescribed redress calculation methodology is the appropriate and fair way to determine if Mr B suffered actual financial loss from the unsuitable advice, as it accounts for all charges including initial and ongoing advice fees. This methodology is well-established and seeks to put the consumer back in the position they would have been in had they received suitable advice and remained in their DB scheme. Therefore, JKFS's offer to conduct this calculation represents fair compensation and a fair resolution.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| JKFS (UK) Limited, all decisions | 1 | 0% |
Source
Read the original decision on the Financial Ombudsman Service website