Upheld: unsuitable pension transfer advice and inadequate ongoing advice services complaint against True Potential Wealth Management LLP (trading as True Potential)
Financial Ombudsman decision DRN-6386517 of 2026-06-10T00:00:00+00:00. unsuitable pension transfer advice and inadequate ongoing advice services complaint against True Potential Wealth Management LLP (trading as True Potential). Outcome: Upheld.
Decision detail
| Reference | DRN-6386517 |
|---|---|
| Decision date | 2026-06-10T00:00:00+00:00 |
| Firm | True Potential Wealth Management LLP (trading as True Potential) |
| Product | Pension |
| Claim type | unsuitable pension transfer advice and inadequate ongoing advice services |
| Outcome | Upheld |
| Remedy | TPWM must compensate Mr S by: (1) comparing the actual value of his TPI pension investment to the notional value had it remained with OMW; (2) if the notional value is greater, paying compensation equal to the loss plus 8% simple interest per annum from the date of final decision if payment is delayed beyond 28 days; (3) paying compensation into Mr S's pension plan if possible to increase its value, accounting for charges and tax relief; (4) if direct payment is necessary, reducing compensation by a notional tax allowance based on Mr S's marginal tax rate (75% of compensation if tax-free lump sum available); (5) requesting OMW calculate the notional value, or if unavailable, using the FTSE UK Private Investors Income Total Return Index as benchmark; (6) adjusting calculations for any additional sums paid into or withdrawals from the TPI pension; (7) providing clear documentation of the calculation to Mr S. |
Summary
Mr S complained that TPWM provided unsuitable advice to transfer his pension from Old Mutual Wealth to True Potential Investments in November 2020, and failed to provide adequate ongoing advice services for which he paid fees. TPWM claimed the transfer was a non-advised 'direct offer', but the ombudsman found this was an advised transfer initiated by Mr N (the adviser) without Mr S's prior consent or request. The transfer was unsuitable because Mr S's circumstances had not changed since June 2020 when his existing pension was confirmed as suitable, he was already drawing income from the existing pension, and the total costs increased from 1.67% to 1.74% with no offsetting benefits. The ombudsman upheld the complaint and ordered TPWM to compensate Mr S by comparing the actual value of his TPI pension to the notional value had it remained with OMW, with compensation paid into the pension or directly to Mr S with tax adjustments as appropriate.
The Ombudsman's reasoning
The ombudsman concluded this was an advised transfer despite TPWM's claims of a non-advised 'direct offer'. Key reasoning: (1) TPWM could not provide evidence of the direct offer being sent to Mr S; (2) Mr S was registered on TPWM's systems without his consent, suggesting Mr N initiated contact; (3) the adviser declaration in the application form explicitly stated advice had been given; (4) Mr S had a history of receiving advised services from Mr N and would reasonably expect advice; (5) TPWM's own terms of business described an advised service with no mention of direct offers; (6) TPWM's subsequent annual review letters referred to the product being 'initially recommended', reinforcing that advice was given. The transfer was unsuitable because: (1) no updated assessment of Mr S's circumstances was conducted despite June 2020 conclusion that OMW was suitable; (2) Mr S had no reason to transfer as he was already drawing income from OMW; (3) total costs increased from 1.67% to 1.74% with no offsetting benefits; (4) the adviser's motivation to recommend the transfer (TPWM remuneration) rather than Mr S's interests was evident. Regarding ongoing services, while the ombudsman did not need to make a final determination, the reviews were inadequate as they failed to identify the unsustainable withdrawal rate until April 2025, and the promised in-depth review in 2024 was never conducted.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| True Potential Wealth Management LLP (trading as True Potential), all decisions | 2 | 100% |
| Pension, all decisions | 15,409 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website