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Contributions paid under bad advice

An arrangement under a registered pension scheme might have been mis-sold or purchased under a misapprehension and, following the recommendation of the Financial Ombudsman Service or »Ê¹ÚÌåÓýapp Pensions Ombudsman, a refund of contributions is made to the member.

Unless the refund is either a:

• refund of excess contributions lump sum - see PTM045000
• short service refund lump sum - see PTM045000

the refund will be an unauthorised member payment. (An unauthorised payment that is made in accordance with an order by the Financial Services Ombudsman or »Ê¹ÚÌåÓýapp Pensions Ombudsman would not be subject to the scheme sanction charge - see PTM135200.)

Also, there would be an unauthorised member payment should there be an agreement between a registered pension scheme and one of its members to refund contributions because the member is dissatisfied with the administration of the scheme or has a change of mind on investment strategy.