Partially upheld: unsuitable pension advice and failure to provide ongoing service complaint against St. James's Place Wealth Management Plc
Financial Ombudsman decision DRN-6327705 of 2026-04-30T00:00:00+00:00. unsuitable pension advice and failure to provide ongoing service complaint against St. James's Place Wealth Management Plc. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6327705 |
|---|---|
| Decision date | 2026-04-30T00:00:00+00:00 |
| Firm | St. James's Place Wealth Management Plc |
| Product | pension |
| Claim type | unsuitable pension advice and failure to provide ongoing service |
| Outcome | Partially upheld |
| Remedy | SJPWM to refund charges taken from January 2025 to 15 May 2025 with interest at 8% simple calculated from date of offer to date of final decision. SJPWM to pay £150 compensation for distress and inconvenience. SJPWM to provide tax deduction certificate if requested and notify Mr R of any income tax deducted from interest. |
Summary
Mr R complained that SJPWM gave unsuitable pension advice leading to unsuitable employer contributions from his family business Firm X, which subsequently became insolvent. SJPWM recommended consolidating Mr R's existing pensions into a Retirement Account and advised on ad-hoc contributions of £31,000 in 2020 and 2021 to maximize his annual allowance. When Firm X later faced insolvency proceedings, Mr R was required to repay £115,000 to the estate, partly by reversing pension contributions. The ombudsman found the pension switches suitable and the ad-hoc contribution advice not unsuitable because SJPWM could not reasonably have known Firm X lacked funds, but upheld the complaint regarding SJPWM's failure to provide an annual review in 2025 after Mr R notified his intention to transfer his pensions. SJPWM was ordered to refund charges from January to May 2025 with interest and pay £150 compensation.
The Ombudsman's reasoning
The ombudsman found that SJPWM's recommendations for pension switches were suitable as they met Mr R's objectives of consolidating pensions and obtaining ongoing investment advice without giving up guaranteed benefits. Regarding ad-hoc contributions, SJPWM could not reasonably have known that Firm X lacked funds to make contributions unless explicitly told, as it did not have access to company accounts and Mr R did not disclose his intention to transfer personal funds via director's loan. The email reference to business being depressed was insufficient to indicate insolvency. SJPWM's recommendation that contributions come from Firm X was reasonable in normal circumstances and consistent with prior advice. The only valid complaint was the failure to provide the annual review due in February 2025 after Mr R had notified his intention to transfer in December 2024, yet SJPWM continued charging until May 2025.
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