Not upheld: inadequate ongoing advice service and poor fund performance complaint against Quilter Financial Planning Solutions Limited

Decision detail

Summary

Mr S complained that Quilter Financial Planning Solutions Limited failed to provide adequate annual reviews of his pension from 2017 onwards, resulting in poor fund performance and poor value for money. He sought refunds of ongoing advice charges and compensation for financial losses. Quilter argued it had provided annual reviews as contracted and that the fund remained suitable given Mr S's circumstances and risk profile. The ombudsman found that Quilter had conducted annual reviews as required, that the depth and length of reviews were reasonable given the simplicity of the product and stability of Mr S's circumstances, and that Quilter's fund management approach was sound, including recommending a switch when underperformance became evident in 2023. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Mr S disputed the depth and quality of reviews, the FCA has not prescribed specific rules on how long or detailed annual reviews must be. The length and depth can vary based on legitimate factors including product complexity and specific client agreements. Mr S's product was simple (single managed fund) and his circumstances remained largely unchanged, making shorter reviews reasonable. Quilter met its contractual obligations by conducting annual reviews and confirming suitability. The ombudsman noted that value is subjective and Mr S had the option to cancel the service, which he did. Regarding fund performance, the ombudsman found the fund was suitable at inception and remained appropriate given Mr S's unchanged risk profile. When Quilter identified potential underperformance in 2023, it reasonably recommended a switch. Mr S's failure to act on this recommendation was his choice, not Quilter's fault.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website