Upheld: Pension transfer advice complaint against HUB Financial Solutions Limited trading as HUB Pension Consulting
Financial Ombudsman decision DRN-6336526 of 2026-06-18T00:00:00+00:00. Pension transfer advice complaint against HUB Financial Solutions Limited trading as HUB Pension Consulting. Outcome: Upheld.
Decision detail
| Reference | DRN-6336526 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | HUB Financial Solutions Limited trading as HUB Pension Consulting |
| Product | Pension |
| Claim type | Pension transfer advice |
| Outcome | Upheld |
| Remedy | HUB Financial Solutions Limited must calculate and pay redress to Mr D in accordance with FCA rules for non-compliant pension transfer advice (PS22/13 and DISP App 4), up to a maximum of £200,000. The calculation should: (1) assume Mr D would have remained in the DB scheme and taken benefits at normal scheme retirement age; (2) use the most recent financial assumptions; (3) be undertaken promptly following Mr D's acceptance; (4) be offered as a cash lump sum with explanation that it will be invested prudently; (5) include an offer to calculate how much could be augmented to a DC pension rather than taken as cash; (6) apply a notional 20% income tax deduction to lost taxable income elements (but not to lost tax-free cash). If compensation exceeds £200,000, the ombudsman recommends HUB pays the balance, though this would not be binding. |
Summary
Mr D sought advice from HUB in 2018 regarding his defined-benefit occupational pension. In February 2019, HUB advised him to transfer his DB pension to a personal pension, citing objectives to access tax-free cash to repay a mortgage and fund guest house renovations. Mr D complained in 2025 that the advice was unsuitable. The FOS upheld the complaint, finding that the critical yield of 8.4% required to match DB benefits was substantially higher than reasonable discount rates of 3.3%, meaning Mr D would likely receive lower retirement benefits. The ombudsman concluded Mr D's objectives were not genuine needs as he had sufficient savings and disposable income, and that HUB failed to adequately explore alternative means or conduct thorough retirement planning. The ombudsman directed HUB to calculate and pay redress up to £200,000 in accordance with FCA rules for non-compliant pension transfer advice.
The Ombudsman's reasoning
The ombudsman applied the FCA's starting assumption that DB pension transfers are unsuitable unless clearly demonstrated to be in the client's best interests. The critical yield of 8.4% was substantially higher than reasonable discount rates (3.3%) and regulator projection rates (2-8%), meaning Mr D was very likely to receive substantially lower retirement benefits. Mr D's stated objectives (mortgage repayment and renovations) were not genuine needs as he had sufficient savings and disposable income to meet them, and appeared to have already planned how to fund the renovations. The objectives only arose after the enhanced transfer value was offered. HUB failed to adequately explore alternative means of meeting Mr D's objectives or conduct a thorough assessment of retirement expenditure needs. The guaranteed income from the DB scheme was particularly valuable given Mr D's reliance on uncertain guest house income in retirement and his wife's lack of pension provision. While HUB provided information about risks, this did not make unsuitable advice suitable. The ombudsman concluded Mr D would not have insisted on transferring if given clear professional advice against it, as he was an inexperienced investor who had not previously considered accessing his pension.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| HUB Financial Solutions Limited trading as HUB Pension Consulting, all decisions | 1 | 100% |
| Pension transfer advice, all decisions | 7,599 | 54% |
| Pension, all decisions | 15,602 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website