In a case highlighting ongoing concerns about transparency and accountability in financial advising, Michelle Ogundehin, author and former magazine editor, detailed her protracted dispute with a former financial adviser over unreturned commissions.
Ogundehin initially entrusted her pension and an individual savings account (ISA) to a regulated adviser recommended by a friend in 2017. Over the years, she received only brief annual statements that omitted fees or deductions, and communication dwindled, particularly during the COVID-19 pandemic. By September 2022, amid rising mortgage rates triggered by the UK’s economic turbulence following the mini-budget of then-Prime Minister Liz Truss, Ogundehin realized she had not heard from her adviser since late 2020. Concerned, she reached out, only to receive a vague reassurance that investment returns remained positive despite changing mortgage conditions.
Dissatisfied, Ogundehin switched to a new adviser in early 2023, who emphasized transparency, client engagement, and a thorough review of her financial priorities and risk tolerance. This contrast led Ogundehin to scrutinize her previous adviser’s practices and the trail commission he had been receiving since 2019. Trail commissions are ongoing fees paid to advisers, intended to compensate them for continuing services. Though disclosed in paperwork Ogundehin admitted not fully understanding, she questioned the validity of this commission given the near absence of communication or management after 2020.
She formally requested repayment of the trail commission received between January 2021 and March 2023. Instead of resolving the matter promptly, the adviser disputed the claim, attributing delays to personal circumstances and the pandemic. Despite a lengthy five-month period to produce a "formal and final response," this document was lost in the post and only delivered electronically after further prompting in late 2023. The adviser suggested Ogundehin seek redress through the Financial Ombudsman Service if dissatisfied.
In July 2025, the Financial Ombudsman Service upheld Ogundehin’s complaint, ruling that the adviser had failed to provide adequate ongoing service yet accepted continued commission payments. The ruling ordered the adviser to refund the commission with 8% interest and compensate Ogundehin £200 for distress and inconvenience. The adviser argued that Ogundehin had not engaged sufficiently with her accounts and pointed to a lack of formal agreement at the outset, a claim the Ombudsman dismissed, noting no evidence of suitable reviews or signed agreements had been provided.
Despite the ruling, the adviser repeatedly failed to comply with the repayment order. Efforts by both the Financial Ombudsman and Ogundehin to enforce the decision were met with excuses, including personal health issues and logistical difficulties. By April 2026, after more than three years since raising concerns, Ogundehin escalated the matter by initiating court proceedings.
On the morning she filed the case, payment finally arrived totaling £779.09—the sum owed plus interest—though the adviser refused to pay the additional £70 court fee, claiming the legal action was unnecessary and premature. Ogundehin declined a partial settlement and insisted on full compliance to close the matter.
The case underscores the importance of clear communication, client engagement, and transparency in financial advice services. Ogundehin reflected that while she remains cautious about direct involvement in investment decisions, she now understands the necessity of knowing exactly what fees are being charged and having confidence in the professionalism of those managing her money.