Fidelity Retail Pension Scheme · CAS-82915-B7C0

CAS-82915-B7C0

Ombudsman’s Determination Applicant Mr S

Scheme Fidelity Retail Pension Scheme (the Scheme)

Respondents Fidelity International (Fidelity)

Outcome

Complaint summary

Background information, including submissions from the parties

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“The completed transfer-out paperwork was received on 15 March 2021 and after a review of the forms we have had to return some of the documents to Fidelity Retail Pension Scheme for amendments to be made.”

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Adjudicator’s Opinion

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The Adjudicator addressed the points raised by Fidelity. In summary he said:-

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On 30 October 2024, the Adjudicator sent a timeline of events to confirm with Fidelity (Appendix two). This timeline included the events as they happened and compared it to a potential timeline had Fidelity completed the RSPI the first time it was sent. The result was that the transfer from the ceding scheme to Fidelity would have taken place on 16 March 2021. This would have meant that the transfer would have been completed on the day of the cut off (as per Fidelity’s own cut off dates).

On 31 October 2024, Fidelity responded to this timeline and highlighted that although the funds were transferred from the ceding scheme to Fidelity on 16 March 2021, they would not have settled in Mr S’ account until 17 March 2021 (Appendix two). Fidelity argued that as this is after their deadline for processing pension transfers it would not have been able to complete the holdings being transferred to Mr S’ drawdown account and Tax-Free Cash (TFC) payment in the remaining 11 working days.

The complaint has now been passed to me to consider. I have noted the additional points made by Fidelity, but I agree with the Adjudicator’s Opinion.

Ombudsman’s decision

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Therefore, I uphold Mr S’ complaint.

Directions To put matters right, the Employer shall, within 28 days of this Determination:

(i) Pay £1,520.80 to Mr S. This figure represents the amount of tax that Mr S has had to pay as a result of not receiving £7,604 in the 2020/21 tax year;

6 CAS-82915-B7C0 (ii) Pay Mr S £738.32 in addition to £261.68 already paid in respect of the serious distress and inconvenience he has experienced.

Anthony Arter CBE

Deputy Pensions Ombudsman

5 December 2024

7 CAS-82915-B7C0 Appendix 1 Code of Business Sourcebook

19.1 Pensions transfers, conversions, and opt-outs

Application

Except where a firm is providing abridged advice (see COBS 19.1A), this section applies to firm which:

(1) Gives advice on pension transfers, pension conversions and pension opt-outs to a retail client; or (2) Arranges pension transfers, pension conversions or pension opt-outs.

In relation to:

(3) A pension transfer; (4) A pension conversion; or (5) A pension opt-out from a scheme with safeguarded benefits or potential safeguarded benefits.

A firm should comply with this section in order to give appropriate independent advice for the purposes of section 48 of the Pension Schemes Act 2015.

8 CAS-82915-B7C0 Appendix 2 Event Actual timeline Potential timeline (if the forms were completed correctly)

IFA sends transfer 18/02/2021 18/02/2021 application form to Fidelity

Confirmation of Mr S’ bank 02/03/2021 02/03/2021 details

Documents sent to Fidelity 03/03/2021 03/03/2021 (LOW, EOW, nomination forms)

IFA chases Fidelity for 10/03/2021 10/03/2021 RSPI to be sent to the ceding scheme

The ceding scheme 15/03/2021 15/03/2021 updates that the LOA, EOW and nomination forms have been received

The ceding scheme asks 22/03/2021 N/A that the RSPI to be completed again (as it was completed incorrectly

The IFA chased the ceding 30/03/2021 N/A scheme again with the response that the RSPI had been completed incorrectly

Deadline for Mr S receiving 05/04/2021 N/A payment in the 2020/2021 tax year.

Ceding scheme receives 08/04/2021 15/03/2021 the completed RSPI from Fidelity

Funds transferred from the 12/04/2021 16/03/2021 ceding scheme to Fidelity

Funds received into Mr S’ 13/04/2021 17/03/2021 account

9 CAS-82915-B7C0 The IFA complains to 13/04/2021 N/A Fidelity

Holdings are transferred to 16/04/2021 22/03/2021 Mr S’ drawdown account and TFC payment sent

End of tax year N/A 01/04/2021

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