Not upheld: Investment mis-selling complaint against The Ancient Order of Foresters Friendly Society Limited

Decision detail

Summary

Mr L invested £25 monthly into a Tax Exempt Savings Plan for 10 years, which matured in July 2021 with a value of £3,077.64. He complained about the level of returns and bonus payments, claiming he was unaware of the bonus structure and maturity charges until termination. The ombudsman found the business provided clear documentation stating that projected returns were illustrative only and not guaranteed, with bonuses dependent on with-profits fund performance. The ombudsman concluded the business had not behaved unreasonably and that investment performance variations are outside the business's control, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that the business provided clear documentation stating that projected returns were examples only and not guaranteed. The only guarantee was the sum assured (£3,000), with bonuses dependent on with-profits fund performance. The ombudsman noted that investment performance is outside the business's control and that the FOS does not generally consider complaints about investment performance alone. The documentation adequately explained the with-profits mechanism and bonus structure. Mr L received slightly less than the 4% illustration example (£3,080), which is consistent with actual market performance not matching the illustrative rate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website