Not upheld: unsuitable pension transfer advice complaint against St. James's Place Wealth Management Plc (SJPWM)

Decision detail

Summary

Mr G complained that SJPWM gave unsuitable advice in 2016 to switch his SIPP to a St. James's Place Retirement Account. Mr G's representative raised concerns about his financial inexperience, lack of understanding of transfer implications, limited diversification, higher charges, and loss of guaranteed benefits. The ombudsman found the switch was suitable because it met Mr G's key objective of receiving ongoing financial advice from his existing adviser Mr B, reduced overall charges by 0.66%, matched his attitude to risk, and included provision for ongoing reviews. SJPWM had adequately disclosed its restricted advice status and provided information about the lower-cost workplace pension alternative. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied FCA regulatory framework and FSA guidance on pension switching to assess suitability. The key finding was that the switch met Mr G's objectives, particularly his desire for ongoing financial advice from his existing adviser Mr B, which would not have been possible under the existing SIPP arrangement. The ombudsman found that the switch did not expose Mr G to higher costs, did not result in loss of guaranteed benefits, matched his attitude to risk, and included provision for ongoing reviews. The ombudsman also found that SJPWM adequately disclosed the restricted nature of its advice and provided sufficient information about the lower-cost workplace pension alternative. The risks associated with the RA were the same as those Mr G was already exposed to under the SIPP.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website