“In order to give suitable advice...as to the Sipp, Grosvenor Financial Consultants would have to take into account the investment itself, for which the Sipp was created and was the reason for the whole arrangement going ahead.
"The Sipp advice cannot be artificially separated from the investment to follow."
The ombudsman believes that if Grosvenor Financial Consultants had declined to carry out the transfer and investment or advised Mr H against the transfer and subsequent investment then it would have been likely that Mr H would not have gone through with the transfer.
Due to this the Fos ordered Grosvenor Financial Consultants to compensate Mr H for the full amount of the loss.
As it is unlikely to be possible to reinstate Mr H into his previous pension schemes the ombudsman has said that the advisers should first obtain the transfer value of Mr H’s previous pension plans and then find the transfer value of Mr H’s Sipp and then pay these amounts into Mr H’s current Sipp.
The firm must also pay any future fees owed by Mr H to the Sipp for the next five years and pay him £250 for the trouble and upset caused.
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