Partially upheld: pension transfer suitability and failure to provide ongoing advice services complaint against KW Wealth Planning Limited trading as Kingswood
Financial Ombudsman decision DRN-6381961 of 2026-05-26T00:00:00+00:00. pension transfer suitability and failure to provide ongoing advice services complaint against KW Wealth Planning Limited trading as Kingswood. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6381961 |
|---|---|
| Decision date | 2026-05-26T00:00:00+00:00 |
| Firm | KW Wealth Planning Limited trading as Kingswood |
| Product | pension |
| Claim type | pension transfer suitability and failure to provide ongoing advice services |
| Outcome | Partially upheld |
| Remedy | KWWPL must refund all ongoing fees charged from June 2021 onwards, adjusted for growth as if the fees had remained invested in the same investment funds from which they were deducted until the date of the final decision. If actual returns cannot be calculated, use the FTSE UK Private Investors Income Total Returns Index as a proxy. Compensation should be paid into Mr F's pension plan if possible, allowing for charges and tax relief. If pension payment is not possible or creates protection issues, pay directly to Mr F as a lump sum with a notional 15% reduction for income tax (25% tax-free, 75% at 20% rate). Payment must be made within 28 days; if not, 8% per annum simple interest applies from the date of final decision. KWWPL must provide clear calculation details. |
Summary
Mr F, aged 63, sought to consolidate eight pensions (seven DC and one DB scheme) in late 2017 to simplify his retirement planning and achieve a target retirement income of approximately £37,000 per year. KWWPL recommended transferring both his DC pensions and his DB scheme (worth approximately £212,000) into a drawdown arrangement. The ombudsman found this advice suitable because the DB scheme's critical yield was low (1.3%), the scheme provided no guaranteed increases in payment (discretionary only, none for five years), and Mr F required flexibility to meet his income objectives. However, the complaint was upheld in part because KWWPL charged Mr F for ongoing advice services (annual reviews at 0.5% of the 1% annual fee) from June 2021 onwards but failed to deliver these services, as Mr F did not attend any review meetings and KWWPL failed to provide a portfolio review letter in 2023. KWWPL was ordered to refund all ongoing fees from June 2021 onwards, adjusted for investment growth, with compensation paid either into the pension or directly to Mr F depending on tax implications.
The Ombudsman's reasoning
The ombudsman found the DB transfer advice suitable because: (1) the critical yield was low (1.3% or minus 2.8%), making it likely Mr F would exceed it with medium-risk investments; (2) the DB scheme's lack of guaranteed increases in payment (discretionary only, none for five years, unlikely to resume given £700m+ deficit) reduced the value of the guaranteed income; (3) Mr F required flexibility to achieve his retirement income objectives of £37,000 per year, which would not have been achievable by retaining the DB scheme alone; (4) the recommended portfolio's historical performance of 6.7% per year suggested Mr F could be better off; (5) Mr F was given clear information about what he was giving up, including the 50% spouse's pension, allowing him to make an informed decision. However, the ombudsman upheld the complaint regarding ongoing advice because KWWPL charged for annual reviews (0.5% of the 1% fee) from June 2021 onwards but Mr F did not attend any review meetings, and KWWPL failed to provide a portfolio review letter in 2023 despite charging for the service.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| KW Wealth Planning Limited trading as Kingswood, all decisions | 1 | 50% |
Source
Read the original decision on the Financial Ombudsman Service website