IFA denies responsibility after cold call from connected firm leads to unsuitable transfer

Water bonds

clock • 4 min read

The Financial Ombudsman Service (FOS) has ordered a corporate finance firm, Alexander David Securities, to pay compensation to a client over a £14,000 loss arising from a pension transfer.

The unnamed client, Mr I, had complained to the FOS after being contacted by St Pauls Marketing - a soon-to-be appointed representative of Alexander David Securities - and advised to transfer his pension into water bond investments. Mr I, who had been cold called, was told by St Pauls Marketing he would be better off investing in water bonds. As such, he transferred approximately £14,900 to a self-invested personal pension (SIPP) in June 2015. Just over £14,000 of this was transferred to a discretionary fund manager and invested in Hydrology Debentures PLC. However, Alexander David Se...

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

Many savers fear smaller pension pots after salary sacrifice reforms

Many savers fear smaller pension pots after salary sacrifice reforms

Two-thirds think changes will mean paying more National Insurance

Jasmine Urquhart
clock 08 January 2026 • 2 min read
Evolution of pension recommendations and how 2026 may influence change

Evolution of pension recommendations and how 2026 may influence change

Next year could be the start of something big

Richard Hulbert
clock 06 January 2026 • 4 min read
Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read