James Hay Personal Pension Plan (PO-8134 and PO-8136)

Ombudsman’s Determination

Complaint Summary

Mr and Mrs N complain that James Hay, in their capacity as trustees of the Plan and intermediate landlord of the commercial property held in it:

• failed to act in their best interests by ensuring that the service charges payable to the superior landlord, MW (NI) Ltd until its dissolution and subsequently to Shaftesbury Court Management Company Ltd (Shaftesbury Court) from the Plan were reasonable and fair and accurately billed to the scheme.; and
• failed to charge the tenants of the commercial property the correct rent.

• In order to put matters right, they would like James Hay to (a) arrange for any unjustified service charges paid to the superior landlord to be refunded (b) reduce their annual administration fees to £250 pa for each policy in the Plan (c) repay the survey fees incurred (d) maintain the rental payment at £41,000 pa (exclusive of VAT) and (e) arrange a free transfer of the Plan to another provider.

Summary of the Ombudsman’s Determination and reasons

The complaint should be partly upheld against James Hay because they provided incorrect information about both the service charges and rent payable in connection with the scheme’s commercial property asset.

I therefore partially uphold Mr and Mrs N’s complaint against James Hay and direct that James Hay shall pay £500 in compensation to each of Mr and Mrs N.