Financial Advisor Advice Incorrect

NorfolkR

Several years ago and knowing next to nothing about pensions I took advice on 3 pensions I had, 1 company and 2 private.
The advisor took details of all 3 pensions and came back some weeks later with a detailed breakdown on all 3 and the approximate annual salary, he also advised quite clearly that the 2 private pensions came with guaranteed annuity rates at a very generous rates.
It has now transpired that the larger of these 2 private pensions does not have a GAR and the annual pension from this pension is now going to be significantly less than the advisor indicated. Not only am I now going to have a reduced pension my finances have also been affected as a result of other financial decisions based solely on the findings of the advisor.
The company involved have been contacted and basically said their advice was correct.
The pensions provider was also contacted for clarification on this pension and eventually they confirmed that a GAR did not apply although l have documents saying a GAR applied, other documents saying there was no GAR and other paperwork in which it was unclear. 
I then contacted the financial ombudsman who subsequently found in my favour against both the financial advisor and pension provider the amount awarded I felt was totally inadequate I agreed to it.
The pension provider has not paid the amount it was instructed to do so and nothing has been heard from the financial advisor even though the deadline for payment has been and gone.
The FOS have been advised on what has happened but so far they have not responded.
Any help on where I go from here would be gratefully appreciated. 
 

Andrew31

No where else to go.  The Ombudsmen have looked at and found in your favour.  give us the figures if you want to see if we think it was a reasonable amount.   
If the funds were left as they were due to an expected GAR, they must have been growing in some form or another, so you would not have lost out that much!

Also with regards chasing, i a m not sure, but i guess you would contact the ombudsmen.

SonOf

I then contacted the financial ombudsman who subsequently found in my favour against both the financial advisor and pension provider
That seems extremely harsh on the adviser as they are reliant upon what they are told by the provider.   If the provider made an error, then logically, you would expect the provider to be the one footing the bill.

Not only am I now going to have a reduced pension my finances have also been affected as a result of other financial decisions based solely on the findings of the advisor.
As this GAR never existed in the first place, your income is not reduced or affected by this.  It never existed in the first place. What you effectively lost (or not) is the difference between what the alternative scheme would have given you in investment returns vs what it gave you leaving it where it was.     

The pension provider has not paid the amount it was instructed to do so and nothing has been heard from the financial advisor even though the deadline for payment has been and gone.
The FOS have been advised on what has happened but so far they have not responded.
Any help on where I go from here would be gratefully appreciated. 
You wait.   Both firms are given the opportunity to refer the case to an ombudsman if they disagree with the adjudicator decision.   You would expect the provider to pay quicker than the adviser as the adviser has to refer the case to their insurer and calculations need to be made. That can involve writing to obtain information and third parties carrying out the calculations.   Then once all that is done, the insurer pays out.
The FOS will tell you that all they can do is remind the companies of the decision and to settle.  They cant force the firm to pay out within the period requested.     It is unlikely you wont get the money. It will just be slower than what you were told it would be.  

MarkCarnage

I then contacted the financial ombudsman who subsequently found in my favour against both the financial advisor and pension provider
That seems extremely harsh on the adviser as they are reliant upon what they are told by the provider.   If the provider made an error, then logically, you would expect the provider to be the one footing the bill.

Not only harsh, but illogical, and inconsistent with other Ombudsman decisions. I recall one where there was incorrect information provided by a scheme, and the Ombudsman did not uphold the complaint against the adviser, but suggested that the complainer raise a fresh complaint against the Scheme Administrator. 

Unless of course the findings against adviser and provider were on separate and different issues. 

NorfolkR

Thank you all for your responses.
I will be worse off, I have had annuity quotes and they are less than half that the advisor told me and the annual pension again is less than half that indicated, the fund has not grown enough to make up the difference.
I understand that it now turns out there was no GAR and effectively I never had it in the first place but my argument is that subsequent financial decisions were made based on the annual pension it would have provided. I was 60 when I took the advice and 2 years later I was made redundant and made a decision that I did not need to go back to work anymore and could live of savings until my 65th birthday when I would take my pensions and then rebuild the savings used. I am now 66 and cannot replace those savings that have been used. So not only is my pension going to be less but my savings have also been reduced. Had I been given the correct advice I would have returned to work keeping those savings intact.
The ombudsman has told me that he has seen documents provided by the pension provider to the financial advisor in which it is clear that no GAR applied to the pension so why he said there was in such a detailed manner is a mystery.
The FOS has awarded me £2000 from the advisor and £500 from the provider. This process with the FOS has now been going on for over 12 months now.

JoeCrystal

NorfolkR, could you explore the option of drawing down the pension funds instead and besides, you will be getting the state pension in few years anyway (providing you paid the NI contributions). Nothing is stopping you from doing part-time work if needed anyway.

Andrew31

that is quite interesting. 

When you took redundancy, did you double check the figures again, was there any ongoing advice in place.  Seems a little careless to rely on figures 2 years old when making a big decision (if you did).   

what would you have done if the annuity was a lot a lower?   got a new job?
I am sorry that it worked out like this, but what do you feel you  have you lost out on? you had 4 years of extra retirement, albiet living off your savings.  

Dox

Andrew31 said:

that is quite interesting. 

When you took redundancy, did you double check the figures again, was there any ongoing advice in place.  Seems a little careless to rely on figures 2 years old when making a big decision (if you did).   

The thought process which I've seen many times in a professional capacity is that there's nothing to check when proper advice has been taken 'recently' (especially so close to retirement) - and many people would see 2 years as being very 'recent'. 

Andrew31

Dox said:

Andrew31 said:

that is quite interesting. 

When you took redundancy, did you double check the figures again, was there any ongoing advice in place.  Seems a little careless to rely on figures 2 years old when making a big decision (if you did).   

The thought process which I've seen many times in a professional capacity is that there's nothing to check when proper advice has been taken 'recently' (especially so close to retirement) - and many people would see 2 years as being very 'recent'. 

I kinda of get what you are saying, but a lot can change in two years.    in this case, what level of compensation would you expect to see?

Andrew31

JoeCrystal said:

NorfolkR, could you explore the option of drawing down the pension funds instead and besides, you will be getting the state pension in few years anyway (providing you paid the NI contributions). Nothing is stopping you from doing part-time work if needed anyway.

He is 66, should be getting SP now!

SonOf

but my argument is that subsequent financial decisions were made based on the annual pension it would have provided.
I know someone that had a pension which was incorrectly showing his values as much higher each year on this statements.   He retired earlier and moved to a different area based on that and only when he then went to commence the pension, he was told it was worth around a tenth of the value of the statement.   It went to complaint and was rejected.  It went to the FOS and the FOS rejected the complaint as a clerical error and awarded several hundred pounds for inconvenience.  During the process, the pension holder died.  The wife put it down to stress caused.  It didnt change the outcome.   The crux was that he never had the entitlement to that higher figure in the first place and a mistake does not give entitlement to it.