Adviser wins £237,000 of redress for client after complaint

Adviser wins £237,000 of redress for client after complaint

A financial adviser managed to secure £237,000 of redress for a client over a provider’s handling of her DB pension.

Andrew Oliver, of Kent-based Andrew Oliver & Co, looked into the issue for his client after she said she had been advised in the 1990s to transfer her Shell final salary pension to Reliance Mutual by one of the company’s advisers.

He charged the client £200 to look into whether the transfer had been a good idea, and Reliance Mutual, also based in Kent, admitted that had not been the case and gave the woman compensation to take her pension scheme to the position it would have been without the transfer.

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Mr Oliver said: “They had gone through the right process, but I am not sure the outcome was the best thing for her because the fund would have had to grow at around 12 per cent, which it hadn’t done before or after the transfer.

“I expected Reliance Mutual to fight it, and to give them their due they didn’t.

“There has been a lot of talk about how much advice will cost you recently, but this shows that financial advisers get a pretty raw deal.”

Mr Oliver said the client, who is approaching 65, is now reconsidering her retirement plans and that her pension plans have been “completely transformed”.

Right to reply

Mark Goodale, chief executive of Reliance Mutual, said: “What we do when we see a complaint of this nature we will look at the circumstances of the particular case.

“This was to do with the sales process in the 1990s, and my complaints team concluded from what they saw that it would be appropriate to compensate.”

Mr Goodale added that at the time transferred pension pots needed to achieve a certain yield to be recommended, and even though this particular case would need a yield in excess of the normal recommendation, the adviser suggested the client should go ahead with it anyway.