The current scheme trustee is trying to sort out the records and to pursue the former trustee for the records that they have.
The trustee has stated that the corporate bonds mainly mature in 2017 and it is hoped by the new trustees that at that point members’ interests will identified and then transferred to a new reputable pension provider.
TWS argued no redress should be awarded at the moment unless Mr H can prove he’s incurred a loss and he will have to pay his claims management company 25 per cent of the amount received.
If Mr H agreed to wait until the investment matures in 2017, TWS stated it was willing to pay him £200 as a gesture of goodwill and provide a free review and help him transfer to a new plan in 2017.
But Mr H didn’t accept this offer.
In a final decision, ombudsman Adrian Hudson said Mr H was entitled to use a claims management company and the complaint could not be put on hold until it was seen whether the Ecoquest bond would pay out or not.
The ombudsman said: “Where we decide unsuitable advice has been given, the redress we award is intended to put the customer back in the right position – at the time we consider the complaint.
“TWS can’t simply say that the customer had already decided what he wanted to do, so it simply carried out his wishes regardless of whether it was in Mr H’s best interests.
“TWS should have recognised that as a nurse Mr H was unlikely to have the relevant experience or knowledge to understand the risks of the transaction he was carrying out.
“To be able to advise in accordance with the rules, it (TWS) had to understand the risks associated with the proposed investment. Without this information, it could not say whether the transfer was suitable or not.
“As well as Mr H’s attitude to risk, the rules required TWS to consider Mr H’s financial situation. It also required TWS to be satisfied that he was able to bear the investment risks. It failed to do this.
“There’s no evidence that the transaction was carried on either an ‘insistent client’ or ‘execution-only’ basis.”
The ombudsman ordered TWS to put Mr H in the position he would now be in if he had received suitable advice.
To compensate Mr H fairly, TWS was told to determine the fair value of the investment in the GRP and then pay the difference between the fair value and the actual value.
TWS was also told to pay interest plus £200 for the worry and upset caused.
