Should I pay the fee?

By THIS IS MONEY
Updated:

 

IN September this year I asked a financial adviser to set up a new pension with Friends Provident and organise the transfer of my existing pension balance from Royal & Sun Alliance. The new pension has been set up but after three months the transfer hasn't been done, despite numerous calls to the financial advisers. They say Friends Provident sent the paperwork to the wrong office and there is nothing they can do except call every day. They are charging a fee of over £500 for this work. What do you suggest I do? I think three months is too long for a transfer. DC, Rochdale.

Des Hamilton at OPAS, the pensions advisory service, says: Three months is too long and constitutes maladministration. Make it clear that the IFA's fee will only be paid if the transaction is completed within a specified period. If you have suffered loss as a result of the delay, you can seek compensation from the party responsible. The problem with cases of this nature is fixing the blame - everyone blames someone else. Draw up a detailed diary of who did what and when. This will help to identify relative guilt.

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