Not upheld: Investment mis-selling complaint against Brown Shipley & Co Limited

Decision detail

Summary

Mr and Mrs B complained that BSCL's decision to change its service offering resulted in financial losses, that their portfolio was invested at an inappropriate risk level, and that there were delays in transferring their ISA portfolios. BSCL notified them in July 2022 of service changes and offered three options, including transfer to its Managed Fund Service at reduced fees while maintaining their 'Income' mandate. Mr and Mrs B chose to transfer away and subsequently claimed losses from the liquidation and reinvestment of their portfolio, concerns about high-risk investments, delays in ISA transfers, and an unwanted investment purchase made shortly before their transfer. The ombudsman found no failures by BSCL, determining that the service review was clearly communicated, the offered alternatives were reasonable, the portfolio was invested in line with the agreed mandate, ISA delays resulted from unavoidable third-party issues, and the investment purchase was made during the period when BSCL was still providing the agreed service.

The Ombudsman's reasoning

The ombudsman found that BSCL provided clear information about service changes, offered reasonable alternatives including one that would maintain the agreed mandate without additional costs, and extended the decision-making period. The portfolio composition was consistent with the 'Income' mandate parameters which explicitly allowed for equity exposure up to 55% and alternatives up to 30%, justifying the inclusion of some higher-risk assets for diversification. ISA transfer delays resulted from unavoidable incompatibility issues between providers rather than BSCL failings. The September 2022 investment purchase was made during the period when BSCL was still providing the agreed discretionary service, before a formal transfer request was received. The adviser provided support in explaining options despite the loose arrangement for a face-to-face meeting. All losses claimed resulted from the complainants' decision to transfer away rather than from BSCL errors.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website