The Daily Telegraph - Saturday - Money
Think you’ve been mis-sold? Go to the free Financial Ombudsman
management companies would have the know-how to pursue a successful claim.
Instead, anyone who believes they have been mis-advised into transferring a pension should first complain to the adviser, then if necessary escalate the claim to the ombudsman, he said.
“The sooner you complain the better,” he added. “If you wait too long the advice firm itself may go bust and then you are left with a maximum payout of £50,000 from the Financial Services Compensation Scheme.”
A spokesman for the ombudsman said there had been an 11pc rise in new complaints relating to company pension transfers in 2017-18, from 496 to 553.
The data is not detailed enough to tell whether these transfers relate solely to final salary plans or to other types of pension. If a claim is successful, a complicated formula is used to calculate how much redress is paid. However, the ombudsman can force a firm to pay only up to a maximum of £150,000 in compensation.
When it thinks more should be awarded, it can only recommend that businesses cough up; it cannot compel them to.
Earlier this month the FCA announced a crackdown on “no win, no fee” firms. From April 2019, firms will be required to meet far higher disclosure standards. Crucially, they will have to highlight any free alternatives the consumer could use.
Any companies that buy “lead lists” will also have to check that the names were obtained legally.