FOS faces criticism after Qrops confusion decision

The Financial Ombudsman Service (FOS) is facing criticism over its decision to order Scottish Widows to compensate a client after a rule change around overseas pension transfers led to a 25% tax charge the ombudsman thinks could have been avoided. A client of Scottish Widows complained to FOS after the proposed transfer of his pension plan to a qualifying recognised overseas pension scheme (Qrops) became subject to the overseas transfer charge, even though he made the request before the charge came into effect. The customer, addressed as Mr B, asked the firm about a pension transfer i...