Upheld: delay in pension withdrawal processing; failure to manage adviser transition; internal administrative failure complaint against St. James's Place Wealth Management Plc trading as St. James's Place
Financial Ombudsman decision DRN-6345930 of 2026-05-22T00:00:00+00:00. delay in pension withdrawal processing; failure to manage adviser transition; internal administrative failure complaint against St. James's Place Wealth Management Plc trading as St. James's Place. Outcome: Upheld.
Decision detail
| Reference | DRN-6345930 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | St. James's Place Wealth Management Plc trading as St. James's Place |
| Product | pension |
| Claim type | delay in pension withdrawal processing; failure to manage adviser transition; internal administrative failure |
| Outcome | Upheld |
| Remedy | SJP must: (1) Calculate the notional value of Mr A's pension if the tax-free cash lump sum had been paid on 1 April 2025 and compare to actual value; (2) If there is a loss, compensate by paying into the pension plan if possible (accounting for charges and tax relief) or as a lump sum with 15% notional tax reduction if not; (3) Pay 8% simple interest per year on the tax-free lump sum amount for the period 1 April 2025 to 7 May 2025 (36 days); (4) Pay £1,500 for distress and inconvenience; (5) Provide clear calculations to Mr A; (6) Provide tax deduction certificate if interest is deducted. |
Summary
Mr A, a long-standing SJP client since 2011, decided in January 2025 to access his pension tax-free cash lump sum. After instructing SJP on 2 February 2025, the process stalled due to his adviser's holiday and unclear communications. Mr A terminated his relationship with his old adviser on 4 March 2025 to move to a new adviser, but an internal SJP fee transfer dispute prevented the new adviser from formally taking over until 24 March 2025, causing further delays. Mr A ultimately received his lump sum on 7 May 2025, missing the tax year-end deadline. The ombudsman upheld the complaint, finding SJP responsible for the delay caused by the internal fee dispute and ordered compensation based on Mr A being deprived of his funds for 36 days (1 April to 7 May 2025), plus 8% simple interest and £1,500 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that while Mr A's old adviser should have proactively contacted him upon returning from leave and the communications could have been clearer, Mr A had the opportunity to clarify matters or progress administratively but chose instead to terminate the relationship. However, the ombudsman found SJP was clearly responsible for the delay caused by the internal fee transfer dispute between advisers, which prevented the new adviser from formally taking over until 24 March 2025. Using the actual timeline from when Mr A worked with the new adviser (approximately 30 working days), the ombudsman determined Mr A should have received his lump sum on 1 April 2025 if the process had commenced on 6 March 2025 (the day after transfer of servicing). The delay from 1 April 2025 to 7 May 2025 represents the period for which compensation is due.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| St. James's Place Wealth Management Plc trading as St. James's Place, all decisions | 3 | 33% |
Source
Read the original decision on the Financial Ombudsman Service website