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

Financial Vulnerability Taskforce calls on advisers to rethink retirement planning

Financial Vulnerability Taskforce calls on advisers to rethink retirement planning

Publishes guide suggesting to ‘move beyond a pensions-only approach’

Sophia Panayi
clock 22 July 2026 • 2 min read
What might be in store for pensions under a Burnham premiership?

What might be in store for pensions under a Burnham premiership?

'My first hope for pensions under Burnham is stability and medium-term planning'

Andrew Tully
clock 20 July 2026 • 4 min read
Everything advisers need to know on MEES regulations and pensions

Everything advisers need to know on MEES regulations and pensions

'Commercial property still remains a highly attractive and favourable investment for the right client'

Caitlin Southall
clock 14 July 2026 • 4 min read