Scottish Life has been ordered by the Pensions Ombudsman (PO) to pay out £2,700 in compensation plus an adviser's fees after it badly administered a pension transfer.
Members of the Melford Electronics Talisman Group Pension Plan (GPP) were advised by a Foster Denovo IFA, referred to in case notes as Mr Bartlett, to switch to an Aegon plan.
However, Scottish Life provided incorrect information to Bartlett on the transfer penalty fees that would apply if the nine members moved their savings.
When some members found they had been charged a penalty, Bartlett complained to the Pensions Advisory Service (TPAS) and Scottish Life eventually offered each member affected £150 compensation.
However, Bartlett said he had already logged 37 hours work at £95 per hour on the issue, and complained £150 per member would not cover his charges.
Tony King, the PO, decided Scottish Life must allow members of the GPP to transfer back to Scottish Life if they so wish and reinstate their policy at the value it would have been had no transfer occurred.
The ombudsman also decided Scottish Life must pay each member £300 compensation for distress caused within two weeks, and must pay Bartlett's fees arising from the extra work the maladministration caused.
In May, Prudential paid the fees of IFA Yvonne Goodwin after a mistake the insurer made on a client's pension led to additional work.
The Pru had made mistakes on 39,000 customers' pensions and issued corrective payments, which Goodwin said triggered a need for advice.
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From 6 April 2019
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