An IFA has blasted James Hay for making 'schoolboy errors' when calculating a SIPP customer's pension benefits.
Bryden Johnson claims James Hay told the client his tax free lump sum would be £100,000, which it was not.
The firm also claims James Hay failed to take into account another of the client's pensions, his enhanced protection certificate and how the lifetime allowance on pension savings would affect him.
The anonymous client has now lodged a complaint with the FOS and director of Bryden Johnson Richard Bryant has issued a scathing open letter to Richard Mattison, marking director at James Hay (pictured).
In the letter, Bryant accuses Mattison of "trying to cover [his] own backside" in articles in the press about the dispute.
Bryant denies his firm has made any mistakes, saying: "If you check
your files, you will find a correctly completed application for enhanced protection from 2006 and this information has never changed.
"I have also notified you that I think your calculations are still wrong and you have in fact now overpaid our client slightly, but have received no response to this.
"At no stage has your organisation demonstrated the least semblance of apology for misleading our client over a period of five years and failure to run a clear and competent calculation system."
Bryant warns other IFAs who have clients with James Hay to check the provider's calculations are correct.
Tom McMahon, operations manager at Bryant Johnson, says: "We do not have many other clients with James Hay, but our concern is, how many others have they got it wrong with?
"This is symptomatic of how James Hay does business; I would not touch them with a bargepole."
A spokesperson for James Hay says the reason its benefits projection given to the client was overstated by £100,000 was because at the time it had not received an enhanced protection certificate.
The spokesperson adds Richard Mattison has replied to Bryden Johnson and says the issue is now a matter for the ombudsman.
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