IFA firm to pay £15,000 compensation after LTA advice failure

‘Never got to grips with LTA regime’

clock • 3 min read

Headley Financial Services has been told to pay out more than £15,000 in compensation to a client after it failed to factor lifetime allowance (LTA) changes into its advice process.

A Financial Ombudsman Service (FOS) decision said Headley should hand over £15,431 in compensation, plus an additional £200 for "trouble and upset," after its client, Mr P, lost out due to LTA changes seven years ago. In 2014, Mr P had pensions with three different providers, including a defined benefit plan, an Aegon personal pension and drawdown arrangement. In total, his pensions were valued at £1.2m. Mr P had taken benefits from two pension providers before April 2006, when A-Day legislation was introduced to simplify pensions in the UK. Because benefits had been taken from the...

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