Slow pension transfer process costs Fairstone client £55,000

Missed deadline by one day

Hannah Godfrey
clock • 3 min read

A drawn out pension transfer process by Fairstone led to a client losing £55,000 when he tried to transfer the value of his former occupational scheme to a new self-invested personal pension (SIPP).

The client, referred to as ‘Mr B' by the Financial Ombudsman Service (FOS), complained after his transfer value quotation dropped by some £55,000 when the advice firm took three months to go through the pension transfer process. On 13 September 2016, Mr B received a transfer value quotation of £541,980. This amount was guaranteed until 13 December 2016, after which it would be recalculated. The transfer could only go ahead if the pension scheme administrator had received all the correctly completed paperwork within three months. However, the administrator did not receive the paperwork...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

IHT pensions changes expected to drive 'strong interest' in annuities

IHT pensions changes expected to drive 'strong interest' in annuities

Though ‘ambiguity’ persists on annuities treatment, retirement planning expert says

Jen Frost
clock 04 November 2024 • 3 min read
Budget end to overseas pensions 'loophole' could cause 'chaos'

Budget end to overseas pensions 'loophole' could cause 'chaos'

OTC applies to more transfers under changes

Jen Frost
clock 31 October 2024 • 2 min read
Pensions tax-free cash untouched – but what about those who acted pre-Budget?

Pensions tax-free cash untouched – but what about those who acted pre-Budget?

No lump sum change should be ‘welcomed’ but damage cannot be undone

Isabel Baxter
clock 31 October 2024 • 5 min read