Ombudsman ruling paves the way for final-salary pensions redress
Savers who have transferred out of generous final-salary pension schemes could be entitled to compensation from their financial advisers, even if the adviser explicitly warned them against it
Savers who have transferred out of generous defined-benefit (DB) pension schemes could be entitled to compensation from their financial advisers, even if the adviser explicitly warned them against it, following a ruling from the Financial Ombudsman Service.
The case concerned a saver who asked his adviser for help transferring valuable DB pension benefits into a defined contribution scheme so he could access a larger cash lump sum. The transfer only went ahead after the saver signed a disclaimer certifying he was making the switch against advice.
But the ombudsman has now ruled that the adviser did not do enough to understand why the person rejected the advice, and should have discussed their options in more detail. The case could pave the way for more claims from people who have regretted a DB transfer, potentially including the Port-Talbot steelworkers (pictured), many of whom agreed to a transfer.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”