Upheld: Complaints handling failures complaint against Janus Henderson Fund Management UK Limited

Decision detail

Summary

Mrs D sold an investment with Janus Henderson and was advised payment would be made by cheque. The cheque was intercepted and cashed by an unauthorised recipient on 19 April 2023. When Mrs D reported this on 28 April 2023, Janus investigated but caused approximately 7 weeks of avoidable delays across two periods (28 April to 22 May 2023 and 7 June to 5 July 2023) when it took little action. The funds were eventually retrieved and transferred to Mrs D on 29 August 2023, approximately 4 months after the sale. The ombudsman upheld Mrs D's complaint, finding that while Janus was not responsible for the cheque being intercepted, it was responsible for the subsequent delays and poor communication, which caused distress and inconvenience. Janus was directed to pay 8% simple interest on the proceeds for the periods of avoidable delay and £300 compensation for distress and inconvenience.

The Ombudsman's reasoning

While Janus was not responsible for the cheque being intercepted by an unauthorised recipient, it was responsible for unreasonable delays in investigating and resolving Mrs D's complaint once she reported the issue. The ombudsman identified two distinct periods where Janus failed to take adequate action: 28 April to 22 May 2023 and 7 June to 5 July 2023, totalling approximately 7 weeks of avoidable delay. The ombudsman found that Janus could have conducted its investigation without these delays and that the firm failed to keep Mrs D adequately informed or provide reassurance during the investigation. The fact that the initial problem was caused by fraudulent activity does not excuse the firm's subsequent handling of the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website