SIPPNov 9 2016

Suffolk Life tells moaning clients 'find another provider'

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Suffolk Life tells moaning clients 'find another provider'

The Pension Ombudsman has taken the unusual step of dismissing a client from further dealings with Suffolk Life, following a long troubled relationship between the two.

In 2002, a couple referred to as Mr and Mrs S both set up Sipps with Suffolk Life, and the only Sipp asset was a jointly owned commercial property. 

Over the years, Suffolk Life had received a number of complaints regarding the operation of their Sipps from Mr and Mrs S, in particular these referred to rental proceeds from the property.

Correspondence between the clients and Suffolk Life eventually resulted in the managing director of Suffolk Life, Will Self, rejecting a complaint made by Mrs S, explaining that he considered a breakdown in the relationship had occurred, and asking her to transfer her Sipp to another provider.

In a decision published on 12 August this year, pensions ombudsman Anthony Arter did not uphold a complaint by the client, and stated no further action was required by Suffolk Life.

According to Mr Arter's determination, each of the complaints along the timeline was investigated and resolved, however, in August 2014, Mr and Mrs S met with Suffolk Life in an attempt to reconcile the issues regarding Mrs S' Sipp and agree a way forward.

The result of this meeting was that Suffolk Life wrote off a significant sum in unpaid fees and additionally credited her Sipp with sufficient funds to reduce her overall debt to £20,000.

Following this, there were further communications between the clients and Suffolk Life surrounding their concerns about the administration of Mr S' Sipp, and Suffolk Life did not uphold a complaint on the administration of a Sipp.

I am satisifed Suffolk Life has not acted with maladministration in respect of the decision to require Mrs S to transfer her Sipp to another provider.Pensions Ombudsman

In February 2015, Suffolk Life provided Mrs S with formal notification that it required her to transfer her Sipp to another pension scheme not operated by Suffolk Life.

In the letter, Suffolk Life stated Mrs S had no confidence in the ability of Suffolk Life to administer the Sipp.

The client complained about this decision, but Suffolk Life did not uphold the complaint, however she contested this again. 

Mr and Mrs S complained to the pensions ombudsman, and asked their complaints be viewed together on the grounds they were "inextricably linked".

Suffolk Life had also confirmed at this stage it would cover costs up to £2,000 for financial advice to aid the transfer of the Sipp.

The Pension Ombudsman adjudicator concluded that: "There had been a breakdown in the relationship that existed between Mrs S and Suffolk Life and, in such circumstances, it was reasonable for Suffolk Life to have sought to terminate this relationship by requiring Mrs S to transfer her Sipp to another provider."

However, Mrs S did not accept the decision and her complaint was passed on to Ombudsman Mr Arter, who said in his final decision it was clear from Mrs S' comment she did not believe Suffolk Life had acted reasonably in requiring her to transfer her Sipp to another provider.

He said: "Having carefully considered all the evidence, I am satisfied that Suffolk Life correctly identified the applicable paragraphs of the terms and conditions and correctly applied all those requirements.

"Given the facts of this case, I am satisifed Suffolk Life has not acted with maladministration in respect of the decision to require Mrs S to transfer her Sipp to another provider."

Greg Kingston, head of communications at Suffolk Life, explained to FTAdviser the firm felt they had "no option" but to ask the client to leave.

He added that Suffolk Life was "reassured" by the Pensions Ombudsman's decision.

ruth.gillbe@ft.com