Hornbuckle SIPPs (PO-9217 and PO-16226)

Ombudsman’s Determination

Outcome

The complaint made by Mr and Mrs X against HML is partly upheld, but there is a part of the complaint I do not agree with. To put matters right for the part that is upheld, HML should:

• reimburse Mr and Mrs X the fees payable to HML and their solicitors to carry out the transfer of the SIPPs’ administration to Liberty SIPP Ltd (Liberty) totalling £3,534; and
• pay Mr and Mrs X £2,000 for the significant distress and inconvenience which they have suffered dealing with this matter.

My reasons for reaching this decision are explained in more detail below.

Complaint summary

Mr and Mrs X complain that HML, having upheld their latest complaint about the substandard administration for the SIPPs in January 2015, wrongly decided not to pay them and their IFA further compensation because they considered that the redress already paid for previous poor service was sufficient.

Mr X contends that HML had promised him during a meeting which took place in December 2013 that their administrative service for the SIPPs would improve and he was left with no choice but to transfer the SIPPs to another provider, Liberty, when HML’s service continued to be unsatisfactory.

In order to put matters right, they would like HML to compensate them and their IFA in full for the additional costs which they have incurred carrying out the transfer and for dealing with their complaint as follows:

1. Liberty (transfer of property fees and initial property fees)               £600
2. BRM Solicitors (legal fees for transferring the property to                 £4,104.55
3. the new trustees)
4. Eversheds Solicitors (fees for providing HML with legal advice)       £1,800
5. The IFA (fees for selecting possible scheme providers)                       £7,000
6. The IFA (fees for formulating and presenting the                                   £6,375 plus
7. complaint made by Mr and Mrs X)                                                               VAT of £1,275
8. Total                                                                                                                         £21,154.55

A breakdown of the IFA fees under (d) and (e) may be found in the Appendix.