View more on these topics

Intrinsic to pay after couple’s pension transfer charge complaint

Intrinsic Financial Planning has been told to compensate two clients who were advised to transfer their pensions into plans that made them worse off.

The Financial Ombudsman Service handled two complaints from Mr H and Mrs H who said they were not aware of the charges that were applied to their pensions on transfer.      

In early 2016 Mr and Mrs H met with their new adviser, following the retirement of their previous one, when they agreed to discuss their finances.

Mr H had three personal pensions with a value of around £68,500 and a recommendation was made to transfer into a new plan with a 5 per cent initial and 1 per cent ongoing adviser charge.

Mrs H had two paid up pensions with a value of around £40,000 and a recommendation was made to transfer into a new plan with a 5 per cent initial and 1 per cent ongoing adviser charge.

Both said they did not receive suitability reports and complained about the transfers when given copies of them.

They argued these reports were the first time they were aware of the initial charge and would not have gone ahead if they had been aware at the time of the advice.

Intrinsic did not uphold either complaint and said both Mr H and Mrs H had been made aware of the charge through a variety of documents.

The adjudicators investigated and felt the complaints should be upheld as the charges for the new plans were higher and contradicted Intrinsic’s reasoning that the transfer would give both lower fees.

Intrinsic disagreed, pointed to the suitability reports which explained the reasons for the transfers and explained the difference in charges between the plans and set out the adviser’s reasons for recommending the transfers.

The cases were referred to ombudsman Roy Milne who ruled in favour of Mr and Mrs H as he could see no good reason for the extra product costs incurred upon transfer.

Milne says Intrinsic should pay both £100 for the disruption caused to their retirement planning and compensation based on the benchmark he has selected.

Intrinsic declined to comment.

Recommended

technical financial graph on technology abstract background

Pension transfers hit record £10.6bn in Q1

Pension transfers hit a record of £10.6bn in the first quarter of this year, according to Office for National Statistics data. The figures show the value of pension transfers in 2017 was revised up £2.5bn to £36.8bn. AJ Bell senior analyst Tom Selby says: “The Q1 2018 figure also likely includes a large number of […]

Delivering advice and guidance in the workplace

Three advisers share their ideas and experiences of helping employees with their financial decisions The workplace is instrumental in engaging people to save for retirement. How are advisers helping employers provide advice or guidance to their employees? Telephone guidance Financial education provider and advice firm Wealth at Work recently launched a telephone guidance service to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 26th June 2018 at 3:49 pm

    Higher product charges, an initial adviser charge of 5% and 1% p.a. ongoing? The benefits offered by the new plans would have to have been pretty flipping fantastic to overcome all that. What did the Critical Growth Rate illustrations indicate?

  2. Stanley Rogers 26th June 2018 at 6:05 pm

    Is this charging structure the norm? Perhaps the FCA should investigate all the pension transfers Intrinsic has carried out.

  3. A J Bell Management should compensate Mr S for their Corporate intermedling, their malpractice and criminal activities by Chairman,CEO and employees to destroy Mr S pension fund, built up from a Scottish Widows Final Salary Scheme transfer.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com