Upheld: unauthorized pension transfer, failure to follow customer instructions, delay in complaint handling complaint against St. James's Place Wealth Management Plc
Financial Ombudsman decision DRN-6317513 of 2026-05-11T00:00:00+00:00. unauthorized pension transfer, failure to follow customer instructions, delay in complaint handling complaint against St. James's Place Wealth Management Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6317513 |
|---|---|
| Decision date | 2026-05-11T00:00:00+00:00 |
| Firm | St. James's Place Wealth Management Plc |
| Product | pension |
| Claim type | unauthorized pension transfer, failure to follow customer instructions, delay in complaint handling |
| Outcome | Upheld |
| Remedy | SJP must: (1) request Aviva recalculate the cost to restore Mrs G's pension to the position it would have been in at the date of final decision; (2) pay this sum into Mrs G's Aviva pension if possible; (3) if Mrs G requests cash payment, apply a 15% notional tax deduction and pay the net amount to Mrs G; (4) pay Mrs G £750 for distress and inconvenience caused |
Summary
Mrs G complained that SJP transferred her Aviva pension to SJP despite her explicit request on 27 September 2023 to put the transfer on hold. The funds were out of the market for approximately 3.5 months before being returned to Aviva on 10 January 2024, causing financial loss. SJP did not provide a full complaint response until August 2025, nearly two years after the complaint was made. SJP offered £5,432.88 for financial loss and £500 for distress and inconvenience, but Mrs G rejected this and referred the complaint to FOS. The ombudsman upheld the complaint and ordered SJP to recalculate the financial loss based on current unit prices, pay it into the pension or in cash with a 15% notional tax deduction, and pay £750 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman confirmed that Aviva's redress calculation method is the most appropriate way to restore Mrs G to her original position. The August 2025 offer of £5,432.88 was fair and actually more generous than FOS would award since it did not apply a notional tax deduction. However, as the offer has not been paid and market conditions have changed, the calculation must be updated to current unit prices. A notional 15% tax deduction should apply if compensation is paid in cash outside the pension. The £750 award for distress and inconvenience is appropriate given the considerable stress caused by the unauthorized transfer and the unacceptably prolonged resolution period of nearly two years.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| St. James's Place Wealth Management Plc, all decisions | 683 | 26% |
Source
Read the original decision on the Financial Ombudsman Service website