Not upheld: Investment mis-selling complaint against Philip J Milton & Company Plc

Decision detail

Summary

Mr F complained about PJM's management of his Stocks and Shares ISA, specifically objecting to the investment in Blue Planet Investment Trust Plc, which he claimed resulted in losses of £600, plus an additional £116.32 on subsequently purchased shares. He also objected to being forced to leave PJM and pay a £30 transfer fee. PJM maintained that the investment was suitable within the discretionary mandate and Mr F's medium risk profile, with Blue Planet representing only 0.8% of his overall portfolio. The ombudsman found that PJM acted within its authority, exercised appropriate professional judgement, and was entitled to terminate the relationship, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that PJM acted within its discretionary mandate and that Blue Planet, representing only 0.8% of the portfolio, was consistent with Mr F's agreed medium risk profile. The ombudsman noted that investment performance decisions involve professional judgement and subjective choices that should not be interrogated with hindsight, and that the absence of poor performance does not indicate unreasonable conduct. The ombudsman also found that PJM was entitled to terminate the business relationship and that there was no evidence the termination was retaliatory for the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website