Upheld: SIPP administration failure, irresponsible lease management, failure to collect and invest rental income complaint against Quai Investment Services Limited
Financial Ombudsman decision DRN-6328899 of 2026-05-06T00:00:00+00:00. SIPP administration failure, irresponsible lease management, failure to collect and invest rental income complaint against Quai Investment Services Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6328899 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | Quai Investment Services Limited |
| Product | pension |
| Claim type | SIPP administration failure, irresponsible lease management, failure to collect and invest rental income |
| Outcome | Upheld |
| Remedy | 1. Provide copy of completed lease to Mr G. 2. Calculate fair value of SIPP assuming receipt of £3,750 quarterly rent from 24 June 2024 to 25 March 2026 (excluding 25 December 2025). 3. Assume rent would have been invested using 50% FTSE UK Private Investors Income Total Return Index and 50% one-year fixed-rate bond benchmark. 4. Compare fair value to actual current value and pay difference. 5. Pay compensation into pension if possible, otherwise as lump sum with 15% notional tax deduction. 6. Quai may require undertaking from Mr G to account for future tenant payments. 7. Pay compensation within 28 days plus 8% simple interest per annum if delayed. 8. Pay £500 total distress and inconvenience compensation (£100 additional if £400 already paid). |
Summary
Mr G complained about Quai Investment Services Limited's administration of his SIPP containing commercial property after Quai took over from Intelligent Money in May 2024. A new lease with higher rent (£15,000 per year versus £12,000) had been drafted in November 2023 but remained unsigned. Quai delayed completing the lease and only collected the original £12,000 annual rent, with rent ceasing entirely from August 2025. The ombudsman upheld the complaint, finding Quai responsible for the delay in completing the lease from May 2024 onwards and the resulting loss of higher rental income and investment growth. Quai was ordered to calculate and pay compensation to restore the fair value of the SIPP, plus £500 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Quai was responsible for delays in completing the new lease from 28 May 2024 onwards and should have collected the higher rent of £3,750 per quarter from that date. While Quai is not directly responsible for tenant payment, it is responsible for administering the SIPP properly and ensuring the lease was completed promptly. The ombudsman made an allowance for the period from August 2025 to February 2026 when Mr G himself instructed the tenant to withhold payment, reducing Quai's liability for that period. The ombudsman determined that compensation should restore the fair value of the SIPP by calculating what it would have been worth had the higher rent been received and invested according to a reasonable benchmark.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Quai Investment Services Limited, all decisions | 12 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website