Not upheld: failure to provide ongoing review service; charging for services not provided complaint against St. James's Place Wealth Management PLC

Decision detail

Summary

Mr K complained that SJP failed to provide ongoing review services for his pension from 2016 onwards while continuing to charge him fees. He had switched to a SJP drawdown plan in 2010/2011 and received annual reviews until moving abroad in 2016. SJP's final response in January 2024 stated the arrangement was pre-RDR and no ongoing reviews were agreed. The ombudsman found jurisdiction to consider charges from September 2017 onwards but did not uphold the complaint, concluding that the original arrangement was a trail commission arrangement where 'ongoing servicing' did not constitute a commitment to provide annual reviews. Although Mr K received reviews until 2016, this did not establish an ongoing obligation, and SJP was not required to refund the fees.

The Ombudsman's reasoning

The arrangement between Mr K and SJP was a pre-RDR trail commission arrangement agreed in 2010/2011. The suitability letter recommended annual reviews but did not commit SJP to provide them as part of the fees received. The product illustration described the commission as payment for 'ongoing servicing' throughout the term, not specifically for ongoing reviews or advice. Although Mr K received reviews until 2016, the fact that a service was provided for some time does not mean SJP was obligated to provide it at all times. The 2024 illustration referencing 'ongoing advice' cannot be fairly applied to define obligations from the original 2010/2011 agreement. Mr K would have known he was not receiving meetings after moving abroad in 2016, and SJP explicitly told him in 2019 it could not provide an advised service due to his relocation. Therefore, SJP was not obligated to provide ongoing reviews after 2017 and the commission received was not payment for such reviews.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website