Namulas SIPP (PO-11717)

Ombudsman’s Determination

Complaint Summary

Mr M has complained that Namulas:-

• allowed the conversion of one of the Properties from commercial to residential use to complete, incurring tax liabilities for the SIPP;
• sold the Properties held by the SIPP below the market value;
• failed to act on an instruction to transfer to a new provider causing a proposed investment to fall through;
• caused him enormous time disruption and lost income of £175,000;
• incurred adviser’s fees to remedy its own failures and charged these fees to the SIPP;
• caused him considerable distress and inconvenience.

Summary of the Ombudsman’s Determination and reasons

The complaint should not be upheld against Namulas because:-

• Namulas did not cause the conversion of the Properties from commercial to residential use.
• the Properties were sold at a price within the bounds of reasonableness given the circumstances.
• it was reasonable to refuse to allow Mr M’s requested transfer to be made whilst there was a potential tax liability to be applied to the SIPP.
• as a whole, Namulas has discharged its duty as the trustee of the SIPP appropriately and in line with the Scheme rules.