Not upheld: refusal to provide financial advice complaint against Truly Independent LTD (TIL)

Decision detail

Summary

Mrs W complained that TIL refused to provide streamlined financial advice confirming she had received regulated advice so she could withdraw her Royal London pension (valued over £30,000 with guaranteed annuity rate) as a UFPLS. TIL declined, explaining they could not recommend the withdrawal and would not provide advice knowing Mrs W intended to ignore their recommendation. The ombudsman found TIL acted fairly and reasonably, as firms have the right to choose customers and regulatory obligations require full analysis and suitability reports for safeguarded pension advice, which Mrs W did not wish to pay for. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that firms have the right to choose their customers provided this is a legitimate exercise of commercial judgement. To provide regulated advice on a safeguarded pension worth over £30,000, firms must comply with regulatory obligations to understand the customer's full circumstances and provide a suitability report. The ombudsman concluded that no firm would reasonably put their name to advice without conducting proper analysis, and that Mrs W's desired streamlined process was incompatible with regulatory requirements for suitable advice. TIL's refusal was fair because proceeding would have compromised their obligation to act in the customer's best interests.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website