Pru to pay back adviser fee after transfer delay

Mr Arter said there was “maladministration” in the fact that Prudential did not get an update from Equiniti on the progress of the transfer.

He also believed, when looking at redress, Prudential should have provided details of its calculation method to Mr Y when it told him the transfer would have to go ahead.

Mr Arter said: “This would have helped to explain to Mr Y why Prudential could not provide him with this information until the transfer had taken place.”

Therefore he concluded that the complaint should be partly upheld and that Prudential should pay redress as set out by the Ombudsman.

The provider must pay three months’ simple interest at the agreed rate of 8 per cent per annum on the £100,000 tax-free cash lump sum not taken; £238 gift aid tax with simple interest at 8 per cent per annum; and the additional £5,000 fee which Mr Y paid to his IFA for arranging the subsequent transfer to Aviva.

Also, if Mr Y can show that he has taken an extra £46,350 in payments from his fund with Aviva then Prudential should pay redress for the loss of the unused tax allowance for the 2018/19 of £11,641.

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