Not upheld: Investment mis-selling complaint against Progeny Wealth Limited

Decision detail

Summary

Mr C complained that Progeny Wealth Limited provided incorrect information during his January 2020 annual review, stating he could switch his pension to cash 'at the flick of a switch', and then failed to act promptly on his February-March 2020 instructions to move to cash, causing financial loss. Mr C claimed that if he had known switching to cash was against Progeny policy, he would have insisted on it earlier. The ombudsman found no written evidence of the alleged January 2020 statement, and even if given, the only demonstrable impact was a one-day delay in execution (18-19 March 2020) which caused no financial loss according to Progeny's calculations. The ombudsman upheld Progeny's policy against market timing and found Mr C capable of making independent investment decisions despite health issues. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found no written evidence that Progeny told Mr C switching to cash could be done the same day, though acknowledged Mr C's recollection could be accurate. Even if this incorrect information was given, the only demonstrable impact was a one-day delay in execution (18-19 March 2020), which Progeny's own loss calculation showed caused no financial loss. The ombudsman found Progeny's policy against market timing and requirement for informed consent before cash switches was reasonable and consistent with industry practice. Mr C demonstrated capability to make independent investment decisions in February and March 2020 despite health issues, and there was no evidence he informed Progeny his health prevented him from going against advice at that time. The firm properly executed Mr C's written instructions and the final response was sent to the correct email address.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website