Not upheld: Investment mis-selling complaint against Redmayne-Bentley LLP

Decision detail

Summary

Mrs G complained that Redmayne-Bentley LLP mismanaged her investment portfolio under the Managed Portfolio Service (MPS), resulting in poor performance compared to market indices, and that the advice to switch from The Collectives Portfolio service was unsuitable. She invested £30,831 in August 2019 with a moderate risk rating and 10-year horizon, made additional contributions totalling £61,459, and her portfolio grew only £681 by February 2022. The ombudsman did not uphold the complaint, finding that investment performance cannot be assessed in isolation as it depends on uncontrollable market factors, Mrs G made an informed decision to switch after being given clear options, and the moderate risk strategy was appropriate to her circumstances and risk tolerance. The business was not obligated to proactively change the portfolio during market dips or invest in undervalued equities without her authority.

The Ombudsman's reasoning

The ombudsman concluded that investment performance complaints cannot be upheld in isolation as performance depends on financial markets beyond the firm's control. Mrs G made an informed decision to switch to MPS after being given clear options and information. The moderate risk strategy was appropriate to her circumstances, objectives, and risk tolerance. The portfolio volatility was broadly in line with her agreed tolerance levels. The business was not obligated to proactively change the portfolio during market dips or to invest in undervalued equities, as this would have shifted the agreed portfolio composition and increased risk without her authority. The business acted reasonably by not unilaterally changing the investment strategy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website