Banking giant HSBC has been told to return the trail commission it took from a retiree for ongoing pensions advice it never delivered.
The Financial Ombudsman Service (FOS) ruled the bank should return the charges taken since inception of the pension eight years ago, excluding initial commission, and pay £350 for stress and inconvenience caused. The client, referred to as ‘Mr J' in the final FOS verdict, had transferred his existing funds to HSBC in August 2006 with a view to commencing taking benefits. This comprised taking ‘unsecured drawdown' and using the maximum tax free cash initially as income, leaving the residual pension fund invested. Tax free cash sums were received between 2006-2008. In its original do...
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