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

Pensions and divorce: Where advisers can add the most value

Pensions and divorce: Where advisers can add the most value

'A pension is not simply another line on a balance sheet'

Tim Latham
clock 12 May 2026 • 4 min read
'A paralysis of the UK pension system' - The reality of transfer delays

'A paralysis of the UK pension system' - The reality of transfer delays

Provider ‘stalling’ causing tense SASS client case

Isabel Baxter
clock 12 May 2026 • 6 min read
WBR group buys financial planning firm's SSAS book

WBR group buys financial planning firm's SSAS book

Part of long-term growth strategy

Jenna Brown
clock 05 May 2026 • 2 min read