IFA to pay compensation after SIPP transfer

'Severe financial losses'

Sophie King
clock • 2 min read

The ombudsman has ordered an IFA to compensate a client after transferring their SIPP money so it was invested through the discretionary fund manager (DFM) arm of a stockbroker instead.

Mr M, as he was dubbed by the ombudsman, complained about the advice he was given by Economic Financial Solutions IFA, trading as Torch Wealth Management. Mr M said he had suffered "severe financial losses" as a result of his transferred investments. Although the 60-year-old had an attitude to risk score of 9, Torch told Mr M it was recommending a portfolio for someone with a lower risk tolerance of 6 or 7. Torch said this was "no higher than high-medium" and it was doing so because Mr M said he could at best accept medium losses. At the time, Mr M was married with one dependant and w...

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