mycongruent.com

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BACKGROUND
Not all consumers have the appropriate skills, knowledge and experience on pension matters thataffect them and may seek professional advice from specialists e.g. Independent Financial Advisors(“IFA”). Where the product or service is regulated by the Financial Conduct Authority (“FCA”) theseadvisors need to be authorised and suitably qualified - in some cases requiring specialist training
e.g. for pension transfers according to the FCA’s training and competence manual.
However, pension complaints are becoming increasingly common due in part to pension freedoms- which give consumers more choices with their pension savings. This is particularly true for pension
transfers; involving consumers giving up safeguarded benefits for a more flexible arrangement e.g.
defined benefit (“DB”) transfer to self-invested personal pension (“SIPPs”). Sometimes the proposed
flexible arrangement may have unsuitable investments e.g. illiquid investments which may further
compound losses for the consumer.
Pension complaints typically involve one or more of the following elements:•

advice to take out a personal pension, stakeholder pensions, SIPP or to make free-standing
voluntary contributions;•advice to transfer from a defined benefit occupational pension scheme to a personal or otherdefined contribution pension scheme (i.e. loss of safeguarded benefits);•

advice to someone with a personal pension to take out an annuity or go into drawdown;•

advice on investments in SIPPs, Executive Pension Plans (“EPPs”) or Small Self-AdministeredPension Schemes (“SSASs”);•

advice on management of a personal pension portfolio e.g. under a discretionary managementagreement;•advice on taking out an annuity or section 32 buy-out policy where the buy-out is in theindividual consumer’s name;•administration of SIPPs, EPS, SSASs or group personal pensions or annuities in payment;

If a consumer has a pension complaint and he remains unhappy with the final response he receives
from the provider or adviser he is able to take his complaint either to the Financial Ombudsman
Service (“FOS”) or to the Pensions Ombudsman Service (“POS”). The FOS deals with complaints
about taking out a pension, transferring a pension or the investment element e.g. investments held
in a SIPP. The POS is there to assist with complaints regarding the administration or management of
personal or occupational pension schemes.
There are eligibility criteria for both the FOS and POS and there is an award limit of £150,000 for
the FOS (to be increased to £350,000 for acts or omissions after 1 April 2019) – however there is noaward limit for POS. If an award is made against the firm then this is legally binding and enforceable
in the courts by the consumer.

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OUR SERVICE
To enable us to assist you fully in your pension complaint we are required to investigate the meritsof the claim, draft the complaint and provide you with support during the complaints process. Ourservice consists of the following stages:

INFORMATION REQUESTThis involves the determination of what additional information is required and, if you do not havethat information, advising you how to obtain it or requesting it on your behalf. Where we ask the firmon your behalf you will be required to provide us with a letter of authority. This will enable us to carryout the investigation and analysis into the merits of the claim.

INVESTIGATION AND ANALYSIS
We will investigate whether the firm’s actions were fair, reasonable and appropriate at the time of theact or omission with regard to the customer risk profile, demands and needs and the communicationfrom the firm - in particular if it was fair, timely and not misleading. We will review the firm’s suitability
report (if applicable) and if there was a recommendation to transfer safeguarded benefits whether
the transfer was appropriate given the customer’s circumstances and the regulator’s rules andguidance in force at the time.

PENSION COMPLAINT
When we have completed the above steps and we have found that a complaint is justified we will:•Determine any direct losses and heads of loss for any consequential loss claim (if any) based on
established legal principles applicable to this area i.e. causation, foreseeability and remotenessof loss. We will quantity each head of loss using our financial and risk expertise without theneed for further expert assistance.

•Preparation of a loss report including redress calculations using our proprietary software andsubmission to the firm providing the required evidence to support each head of loss and,
where evidence is not readily available, providing the necessary arguments why the head ofloss should be included in the claim.

•Provide any additional information requested by the firm or assist with any request forclarification that the firm may have on the original submission.

•Review the firm’s outcome letter and provide you with our opinion on whether thedetermination is fair and reasonable.

•If relevant, review the outcome letter and provide you with our opinion on whether thedetermination is fair and reasonable according to your circumstances.

•If you remain dissatisfied with the firm’s response assist with any referral to the Ombudsman
providing the necessary support through the process or If you decide to pursue the matter
through the courts we can provide you and/or your solicitor with the support through our expert
evidence service.

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FAQS
How do I know if I have a complaint against the firm?
The starting point for most pension transfers (according to FCA guidance) is that the transfer is
not in the best interest of the consumer. You may have a complaint if you have transferred yoursafeguarded benefits e.g. a DB scheme to a flexible arrangement and/or you have suffered a loss orfind it difficult to liquidate any investments held in your flexible plan e.g. a SIPP - then you may havebeen poorly advised or the firm may not have carried out sufficient due diligence on the investments
held in your flexible pension arrangement.
What does the Financial Ombudsman Service have to say about pension complaints?
The number of pension complaints that the FOS has received has increased in recent times – thisis particularly true for pension transfer complaints. The main allegation was the transfer was notsuitable and the firm did not pay due regard to the consumer’s demands and needs at the timeof the transfer. Where a complaint is upheld the FOS is currently able to award up to £150,000 incompensation.
What does the Financial Conduct Authority have to say on the matter?
Due to the extent of misconduct found from its supervisory work (it found that only 47% of advice
on pension transfers could be shown to be suitable), the FCA recently changed the rules around
pension transfers – the significant changes coming into force on 4 October 2018. Pension transfers
where guaranteed benefits are in excess of £30,000 require FCA authorised independent financial
advice in the form of a personal recommendation – the starting position being that the transfer is notin the consumer’s best interests unless it can be demonstrated otherwise.
What if the firm does not uphold my complaint – what options do I have?
If the complaint is eligible you are able to take the matter to the relevant Ombudsman scheme. For
pension transfers and investment complaints the Financial Ombudsman Service has jurisdiction andfor complaints regarding the administration or management of schemes the Pensions Ombudsman
Service has jurisdiction. Depending on the quantum of the claim you may consider litigation but thiscan be a very time-consuming process with a large financial risk and you would be best advised toseek legal advice from a suitably qualified legal professional e.g. a solicitor.

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FAQS (CONTINUED)
Why should I use you – can I not just refer the complaint directly to the firm?
You are always entitled to refer the complaint directly to the firm. Where we can help is that pension
transfer complaints can be difficult to understand for the typical consumer. Not all consumers havethe skills, knowledge and experience to understand the complexity of pensions. The Ombudsman
will not raise a complaint for you – in the first instance a complaint will need to be raised to thefirm. You can only refer a complaint to the Ombudsman if you have received a final outcome letterfrom the firm. We think that a precisely formulated complaint backed up by technical argument cansometimes achieve a better outcome.
I have been offered compensation from the firm as a result of an Ombudsman direction – how can I
check that the amount offered is correct?
Unless you are versed in financial and actuarial mathematics it may be difficult to verify the results.
Congruent have developed calculators (through the Congruent CalculationsTM platform) that may
assist a registered user to perform these redress calculations or we offer a service of doing it foryou.

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ABOUT USCongruent was established in 2013 in response to a growing demand from corporate clientsseeking independent, professional advice on banking services and financial product risk
management and hedging arrangements. We advise businesses directly or through theirprofessional advisors. We also provide expert witness services.

ROGER GRENVILLE-JONES - DIRECTOR
Email: rgj@mycongruent.com | Tel: +44 (0)20 3143 3150
Roger has held a senior position as a ‘Head of Actuarial Function’ within a global insurancecompany and since then has been a consulting actuary for over twenty-five years. He has a wealthof experience in dealing with specialist financial products and is particularly experienced as anexpert witness for financial complaints. Roger was appointed by the Financial Conduct Authority(“FCA”) to provide expert evidentiary analysis on the risk of certain financial products in disciplinary
proceedings against a regulated firm.
He holds an MA in Mathematics from Cambridge University and is a Fellow of the Institute andFaculty of Actuaries. He has also been a university lecturer in actuarial science.

NASAR ZAMIR - DIRECTOR
Email: nz@mycongruent.com | Tel: +44 (0)20 3143 3150
Nasar has held senior positions in institutional sales for a number of global investment banks(including head of Hedge Funds sales). His career in investment banking also includes positions inrisk management and trading and spans more than two decades. He has considerable experiencedealing with banking products - particularly derivatives and structured products and the banking andrisk management processes associated with these products.
Nasar holds a BSc( Hon) in Mathematical Sciences from the University of Bath, an MSc in Actuarial
Science from City University (London) and a postgraduate certificate in Corporate Finance from theLondon Business School. He is an Affiliate of the Institute and Faculty of Actuaries.
BUSINESS INFORMATION
Congruent group of companies comprises a holding company Congruent Holdings Limited 09465766, and Congruent Management Limited 09465853 thatemploys staff and purchases services for the group, and the following operating companies:•Congruent Actuarial Limited 08709494: Regulated by the Claims Management Regulator in respect of regulated claims management activities- authorisation number CRM33563: Regulated by the Institute and Faculty of Actuaries in respect of a range of investment business activities FCA Register for exempt professional firms - reference number IoA120: Subject to the jurisdiction of the Legal Ombudsman: Licensed by the Bar
Standards Board to instruct the Bar directly for advice and for representation•Congruent Administrators Limited 11328182 and Congruent Trustees Limited 11328118 : These companies provide scheme administration andprofessional trustee services to Small Self-Administered Schemes (“SSAS”s)•Congruent Risk Limited 09465877: Congruent Risk owns Congruent’s proprietary software•Congruent Analytics Limited 11328238 and Congruent Financial Limited 09467628 : These companies have been incorporated to reserve the names
and for future use•
Each contracting company is solely responsible for execution of its contracts•
Professional Standards and Code of Conduct: Institute and Faculty of Actuaries•Professional Indemnity Insurance: Insured through Pembroke Managing Agency Limited with Lloyd’s Syndicate 4000•
Registered address of all companies: 141-142 Fenchurch Street, London, EC3M 6BL, United Kingdom•
VAT number (Congruent Actuarial Limited): 175 5513 95•Telephone: +44 (0)20 3143 3150
•Email: team@mycongruent.com or website form•
Primary website address: www.mycongruent.com

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